‘Earnings season’ comes after each quarter
Q: What is “earnings season,” and when is it? — W.S., Worcester, Massachusetts
A: Public companies (those with publicly traded stock) are required to report on their earnings and financial condition in three quarterly “10-Q” reports and in an annual “10-K” report for their fourth quarter. They can structure their fiscal year as they want, and although companies end their years at the conclusion of December, others choose the end of March, June, September or another month.
Earnings reports are typically issued a few weeks after the end of the quarter, so gobs of American companies release their reports from early January through February, from early April through May, from early July through August and from early October through November. These are the four “earnings seasons.” They’re of interest to many investors because they offer new, fresh data on companies, and analysts and commentators will often issue revised opinions on companies after earnings reports.
Stock prices also can rise or fall following an earnings report, when results are better or worse than expected. For best investing results, learn to read and understand financial statements yourself — and keep up with your holdings’ earnings reports.
Fool’s School: Refinancing basics
Interest rates have been extremely low, historically speaking, for many years, and lots of people have taken advantage of that, refinancing their mortgages. Rates have crept up a bit over the past year or so, but with the benchmark 30-year fixed mortgage rate recently near 4 percent, many can still save thousands of dollars by refinancing.
When you refinance, you get a new mortgage on your home, with your lender paying off your previous loan. (You might opt to refinance with the same lender, but you don’t have to.) Refinancings typically involve a lower interest rate and smaller mortgage payments, but some opt for a shorter-term mortgage, resulting in somewhat higher payments on a home that will be paid off sooner.
When you shop for a better deal than the one you have, assess the many mortgage costs involved, such as the origination fee, discount points, the appraisal, the credit report, processing, title insurance and the escrow fee.
You can research available loans and interest rates at bankrate.com and other sites. Consider what “points,” if any, you might pay. A point is equal to 1 percent of the value of your loan. Points are paid upfront when you close the loan and permit you to buy a lower rate. They can make the most sense if you plan to keep the home and loan for many years.
If you can get a new mortgage at a rate that’s at least 1 percentage point lower than your current rate, you might reap enormous savings.
In some refinancings, you can increase the amount of your loan by taking out extra funds — perhaps to pay down credit-card debt or make home improvements. Be careful with this “cash-out” tactic, though: Your valuable home equity will shrink, and cash-out interest rates can be higher.
To be offered the best interest rates, you’ll want to have or build a solid credit rating. Pay your bills on time and avoid excessive debt.
Name that company
I began in Japan in 1933 as a division of an automatic loom company. The Model AA sedan was my first production car, debuting in 1936. Soon after, I was spun off as a stand-alone company. My production was halted temporarily after World War II, but I got back in business. A 4-by-4 utility vehicle was an early success, but even bigger was a model that some might mistake for a Mexican beer. I’ve made more than 33 million vehicles in North America. Few know I’m also involved in housing, financial services, biotechnology and forestry. Who am I?
Last week’s answer
Based in Phoenix, I’m the second-largest recycler and waste disposer in the U.S., with a market value recently near $22 billion. I serve 14 million customers in more than 2,700 communities. I once shared a corporate parent with AutoNation before I was spun off. Who am I? (Answer: Republic Services)