A fiscal year is the one-year period in which the company measures its performance. This period can be from January 1 to December 31 or any other one-year period such as from February 1 to January 31. In fact a company can define its fiscal year as beginning in any month and ending twelve months later. January 1 to March 31, April 1 to June 30, July 1 to September 30, and October 1 to December 31. February 1 to April 30, May 1 to July 31, August 1 to October 30, and November 1 to January 31.
Stock analysts compare earnings from one quarter to the corresponding previous year's quarter.
This type of comparison is reasonable because some businesses are seasonal. That is, sales in some quarters are bigger than in others. It makes perfect sense for these stores to compare sales of one Christmas season with the previous Christmas season. More Inc. Stmt. Information on what the income statement can reveal about the health of a company.