The Q&A Portion of Earnings Calls

Last week, we shared a post about corporate earnings releases, and how many companies are handling them differently.

The recent, and ongoing, influx of new technology has emboldened IROs to take advantage of a variety of new tools and start delivering information in new ways. These new practices extended beyond the initial presentation and into the question and answer session the follows the delivery of the release.

In fact, one of the key findings from the discussions that formed the basis for that piece was that more time should be devoted to the Q&A portion of the corporate earnings presentation, as it is often the most edifying segment for those seeking more information.

Last year, we specifically dug into the Q&A portion of the corporate earnings call to get the industry’s opinions on how it should be handled. We spoke to select buy-side analysts and portfolio managers and asked about their preferences, specifically, wondering if they might prefer the Q&A to take place separately from the rest of the earnings presentation, and why.

Excerpt:

While the preferences varied, a number of participants spoke to the redundant nature of prepared remarks and their preference for more time dedicated to the Q&A portion of the conference call. Notably, one analyst pointed to the danger of leaving a large void of time between the conference call and the Q&A session, especially if the Q&A happens after the market opens, as investors may draw their own conclusions, inevitably causing people to sell first and ask questions later.

See what they all had to say in our Hot Topic Summary Report: Q&A Portion of the Earnings Call.