For many IROs, the most recent earnings call brought a wave of ‘firsts’: first time hosting the call from home, first time hosting it in a different location from the management team and first time asking the CEO to dial in personally.
Last quarter’s update brought an increase of heartfelt messages, pre-recorded statements, scenario analysis and ...
Reporting Archive
The Covid-19 outbreak has resulted in significant volatility in the financial and commodities markets worldwide. Businesses are dealing with lost revenue and disrupted supply chains. In the reporting season, the accounting and investor relations functions are challenged in their analysis of full-year and interim financial statements in many ways.
One issue that has arisen is how the accounting function deals with Covid-19’s impact on IFRS, which focuses on addre...
This has been an extremely difficult earnings season. The universal uncertainty driven by the Covid-19 pandemic and resulting economic shutdown has made the job of communicating with the market fraught with complexity. IR teams have had to adjust the mix of information they share on the earnings call to respond to the core risks and scenarios presented by this crisis.
Prior to the Covid-19 crisis, ESG was, at best, a small part of the earnings call. But in the most ...
CalPERS has voiced concerns that SEC disclosure reforms would leave investors lacking key information – and raise particular challenges given the impact of Covid-19 on companies.
The SEC in January proposed amendments designed, in its words, to ‘modernize, simplify and enhance’ certain financial disclosure requirements under Regulation SK. ‘The proposed amendments would eliminate duplicativ...
As a corporate earnings season unlike any other gets under way, management teams are grappling with how to discuss their first-quarter results or their financial path forward; around 500 companies have already withdrawn their 2020 guidance and many more are likely to do so. Nevertheless, in these uncertain times, it is more critical than ever for company management to speak to investors with crisp, transparent messaging.
We’ve already written about how companies c...
CFOs are becoming clearer about what changes they need to make to financial disclosures in light of Covid-19, according to research from PwC.
In a survey of US CFOs, only 13 percent say it’s difficult to assess where Covid-19 will be discussed in upcoming financial reporting. That compares with 24 percent two weeks ago when the survey was conducted among US and Mexico-based CFOs.
‘Most companies will face a challenging period ahead as they close the boo...
As highlighted in IR Magazine’s new study, companies are increasingly suspending or cancelling earnings guidance. If this trend holds, it will be one of the few slivers of a silver lining of the last few months.
The market instability created by the Covid-19 pandemic has resulted in an about-face from many IR teams. From 2010 to 2019,...
As we move into one of the most challenging earnings seasons in memory, this will be the first time many companies will be providing an update on the impact of Covid-19 on their business and guidance.
In fact, our proprietary research finds that during first-quarter earnings calls, less than 15 percent of S&P 500 companies communicated a potential Covid-19 impact on guidance. But as of the end of Q1 close, 138 S&P 500 companies (28 percent) have announced an...
Covid-19 has led to unprecedented levels of volatility, complexity and uncertainty for issuers, investors and investment banks. Accordingly, issuers are updating or suspending financial guidance they had previously published, and deploying a range of conservative capital allocation strategies, including cutting or suspending dividends and share buybacks.
IR Magazine is working with Intelligize, a Lexi...
Given the rapid acceleration of the Covid-19 pandemic, the first-quarter 2020 reporting season will be the most challenging period for banks since the Great Recession.
Management teams will likely face many questions they have never been asked before as the investment community attempts to assess the current and future impact of the Covid-19 crisis on their companies.
Based on our discussions ...