1. Revenue
Start with sales. Is revenue higher than a year ago? Did it beat what analysts expected? Growing sales mean the company is winning customers.
2. Earnings per share
Next, look at profit per share and compare it with the estimate. Beating the estimate is called a beat, and falling short is a miss.
3. Margins
Check the profit margin. If sales rose but margins fell, costs may be growing faster than the business. If margins rose, the company is becoming more efficient.
4. Guidance
Read what the company expects next. Raised guidance is usually a good sign, and lowered guidance can hurt the stock even when the quarter was strong.
5. The big theme
Finally, find the one headline reason for the quarter, such as a new product, a weak region or higher costs. That is what the market will talk about the next day.