Why is there a delay of several weeks or months in the updating of the OPS charts after a company issues a press release announcing its earnings or EPS?
The vast majority of public companies do not release the Cash Flow Statement data that is required to calculate OPS, operational cash flow and free cash flow when they issue their press releases and host their conference calls for quarterly earnings announcements. This data is not generally available until a company files its full and complete Income Statement, Balance Sheet and Cash Flow Statement with the U. S. Securities & Exchange Commission. StockDiagnostics.com believes that many public companies utilize “earnings announcement” press releases to hide the poor quality of their actual earnings or EPS which can only be determined when a company files its Cash Flow Statement weeks or months later. This practice enables a company to create the “spin” to control the media and unsuspecting individual investors since the Cash Flow Statement required for analysis is filed much later without any fanfare.
