Why do some companies prefer to give results after the bell?

Question

Apple corp for example, are choosing to deliver their latest set of results today after the bell, and I have noticed that this tends to happen a lot in the DOW. What are the advantages to this?

Answer 1

Companies prefer to report after the market if closed or on days the market is not open for serveral reasons

They don't want the market to over react to the news as it's presented, and force an inflated/deflated price.

Reporting this manner permits everyone to have a fair chance of adjusting their positions in the stock or buying/selling the stock

News could often times detract from market activities, or causes false market activity.

Reporting in such a way removes mostly all legal exposure as to how the news will impact the stock.

Answer 2

It is a complete c**p shoot for options investors who can make big bucks off a move. The market makers have a difficult time controlling that trading traffic.  By waiting until after hours, the market makers can get more ready to respond to the investors.

In after hours, there is no options trading.  A stock can make a move up or down in after hours and options traders will miss it if it equalizes back.  That's the way I understand it.  There is big bucks to be made off of options traders if they fail to see the difference in after hours trading situations.  But I like Barney's legality issues too ....regarding insider trading problems....

It should also be noted here, that only institutional investors can partake of certain periods of trading.  So by reporting at certain times, the market makers can push individual investors into a corner, not allowing them to take advantage of the latest good or bad news.

The hedge funds get to trade if they have agreements with the markets.  So after hours trading in a slim window, gives the advantage to the large institutional investors to get in and make their moves first and then the individual investors get taken to the mat...lol

This goes for weekend news and pre market hours as well.

When stocks report earnings they tell about EPS and, in the conference call give guidance.  Both of these elements are important to determine the future value of the prophesied stock price by the investor.

Answer 3

Information is released after the end of a trading day to provide traders, investors, market makers and the public time to consider that information outside trading pressures to provide appearance that the full impact of the information has been weighed and measured before the information effects public trading. It does work to prevent wild and wide fluctuations and provides stability to the market price.

Answer 4

It gives people time to evaluate the information rather than react emotionally.

Also, it helps avoid some insider trading accusations because it gives more time for the information to become "public", get disseminated to all outlets, before people can trade on it.

Answer 5

I know absolutely nothing about investing, or any kind of stock market mumbo jumbo, but I do know it isn't over til the fat lady sings.

I'm guessing some companies feel the same way.   The tail doesn't wanna wag the dog, if it can avoid it.

Answer 6

If you announce results in the morning,than the share prices rises/falls in an overreaction to the news,which are read and digested superficially.Results after the bell,means you can't buy/sell so everyone gets lots of time to digest the results and make a considered opinion on the news before the market opens.Slightly bad news can mean a panic selling in the morning.But the same news after hours can mean a more controlled and considered selling the next morning

Answer 7

They dont want the stock to over react to the news and make it volatile.  If they release it after the market close it gives the market a chance to settle and digest the news.