What are earnings reports
See how earnings reports explain past results and why guidance can move stock prices.
Every few months, companies publish an earnings report. This report explains how much money they made, how much they spent, and what they expect next.
A company may say something like we expect sales to grow or we expect demand to slow. This is called guidance. Markets react a lot to guidance.
In simple words
Earnings tell you what happened.
Guidance tells you what might happen next.