Earnings Season strategies.

I came across this article in Investopedia which most people should find interesting during this earning season.

Companies use various tricks particularly when a company misses estimates with disappointing results.

The five most common methods:

Strategic release timing of bad news during the least amount of audience. The general timing of a release is common manipulation in today's markets. After hours is a better time to release bad earnings as there is a lower level of investor attention. Another method to decrease criticism of a bad report is to release earnings on a day with heavy distraction from hundreds of other companies releasing their reports.
Words like challenging, pressured, slipping, and stressed can be red flags that are often used during press releases to mask bad news.
Companies tend to bold or italicize to draw investors' focus on the good stuff and bury the bad stuff in earning reports. True investors should read the whole release in its entirety and pay attention to future guidance.
The use of Non-GAAP measures such as EBIT, cash flow, and free cash flow should be examined closely with a grain of salt.
Stock buybacks during ER are often used to make the stock more attractive. Investors should be cautious and examine the source of funding for the stock buybacks.

I think an aftermarket earning release could be great news as well. However, bad-earning releases are rarely released premarket.

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