Booyah Breakdown: Navigating the Earnings

Next, go through the revenue numbers, and also make sure the company is controlling its costs. And pay close attention to the company's "guidance" -- that's code for "here's what we expect to happen in the future." If management is cautious or hints at a slowdown in growth, that will affect the stock.

Now keep in mind, an earnings release is usually a single piece of paper, so there's not enough space to tell the whole story.

That's why Cramer insists you get on the company's conference call. On the conference call, there's plenty of time to talk about everything -- including that GAAP vs. pro forma stuff -- and sometimes it's just easier to say something out loud than have the legal team attempt to articulate it on paper.

So go to the company's Web site. There, you'll either get a number to call in, or you can catch it live on the Web. Either way, listen in. You'll learn more on that call than any analyst's report.

That's because you can listen to the tone of the execs, says Rotblut. And just like you can tell if your date is being truthful or being a blowhard, you can do the same as you listen on the call.

Granted, only the analysts can ask questions, but you can eavesdrop and gauge the situation at the company on your own.

So use all the different facets of earnings season to evaluate your stocks, and make sure the reasons you originally bought the shares still holds true.

Only then can you decide if it's worth keeping the relationship going -- or if that Bon Jovi record collection is just a bit too much for you.

>To order reprints of this article, click here: Reprints