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When the fourth quarter begins on Oct. 1 and when it doesn't
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Updated November 27, 2022
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Q4—also known as quarter-four or the fourth quarter—is the last quarter of the financial year for both corporations and other organizations. Many companies' Q4 dates follow the calendar year, starting on Oct. 1 and ending on Dec. 31.
Key Takeaways
- Q4, or the fourth quarter, is the last quarter of the financial year for companies.
- The Q4 dates for most companies follow the calendar year, starting on Oct. 1 and ending on Dec. 31.
- Quarterly reports are a key piece of financial information for investors and analysts.
Understanding Q4
Many public companies, such as Meta (formerly Facebook), follow the business calendar year. However, other companies have financial years that end on odd dates. For example, the financial year for Nike ends on May 31. Considering this differing financial schedule, its fourth-quarter actually begins on March 1.
Nonprofit organizations also typically have adjusted fourth quarters that start July 1 and end on Sept. 30. This is because a majority of donations to nonprofits come in around Giving Tuesday, the largest single-day for charity donations, and general end-of-year giving campaigns. As a result, adjusting their calendar year and Q1 to start Oct. 1 allows nonprofits to kick off their fiscal year and better plan their expenses for the rest of the fiscal year.
Quarterly earnings reportsare important for publicly traded companies, investors, and analysts. They have the potential to significantly impact the value of a company’s stock.
Overview: Quarterly Financials
The fiscal quarter and thefiscal yearare the two main accounting periods for companies. All companies with publicly traded securities are required to file Securities and Exchange Commission (SEC) Form 10-K on an annual basis and Form 10-Q on a quarterly basis. Annual and quarterly reports issued by companies include varying levels of detail. SEC Forms 10-K and 10-Q require detailed, standardized reporting from all public companies.
Quarterly financial results are almost always accompanied by presentations delivered by company management. Firms also frequently provide forecasts for future financial results during these presentations, which are often followed by conference calls where analysts and investors pose questions to a company's management about performance. Q4 reports are typically published alongside the company's entire annual report and financial overview, making them momentous times of year that can dramatically affect a company's stock price.
Key financial accounting metrics are closely followed by research firms. These firms may also publish estimates of future financial results, including revenue, earnings, expenses, and cash. The estimates made by these research firms are tracked by financial publications, which average them to arrive at consensus estimates. Firms that surpass estimates are said to have "beaten the Street," while firms that report figures that are in line with estimates are said to have "met Street estimates." Firms that report figures lower than estimates are said to have "missed Street estimates."
Many investors believe that the market's reaction to financial results may be more important than the results themselves. There are times when most of the participants in the market for a stock are expecting a company to beat estimates, and even when the company succeeds in that endeavor, its shares fall in value. There are other times when market participants are not expecting a company to beat estimates, but it does anyway, causing the shares to surge in price.
When Is Q4?
Q4 is the last quarter of the fiscal year for companies. Most follow the calendar year, which means the fourth quarter starts Oct. 1 and ends Dec. 31. Some companies have fiscal years that follow dates that differ from the calendar year.
What Is a Fiscal Quarter?
A fiscal quarter is a three-month period that acts as a basis for a company’s periodic financial reports. Not all companies have fiscal quarters that correspond to calendar quarters.
Why Is Q4 Important?
Q4 reports mark the end of the fiscal year and its financial results are typically published in tandem with a company's entire annual report and financial overview. These financial results can significantly impact a company's stock price.
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
U.S. Securities and Exchange Commission. "Meta Platforms, Inc., Form 10-K, For the Fiscal Year Ended December 31, 2021."
U.S. Securities and Exchange Commission. "Nike, Inc., Form 10-K, For the Fiscal Year Ended May 31, 2021."
U.S. Securities and Exchange Commission. "Form 10-K."
U.S. Securities and Exchange Commission. "Form 10-Q."
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