As fourth-quarter earnings season approaches, public companies across the nation prepare to report their financial results. But what exactly are earnings reports, why do they matter, and how can investors interpret them effectively?

Yahoo Finance anchor Madison Mills breaks down the top need-to-knows about earnings reports — explaining what earnings mean and their significance, how to interpret earnings per share (EPS), understanding revenue figures and analyzing company guidance.

Watch the video above to learn how these key metrics can help investors assess a company's financial health.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Angel Smith