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Apr 04, 2024

Mastering earnings season: Insights and strategies from the West Coast Think Tank

Sponsored contentIn the fast-paced world of investor relations, time is of the essence and standing still is not an option. I am privileged to have been a part of the IR Magazine Think Tank – West Coast 2024’s panel titled ‘Best-in-class earnings calls: Preparation, execution and measuring success’.

This forum offered a unique platform to engage in meaningful discussions with colleagues and IR professionals, diving into the complexities that define investor relations. The conversations illuminated the critical importance of three key elements: preparation, active engagement and efficient data use – each essential before, during and after earnings calls.

As earnings season approaches, the clock begins to tick more loudly, especially in the critical final 24 hours before the call. This period is defined by heightened urgency, requiring IR teams to tackle a comprehensive list of tasks.

Finalizing earnings call scripts and prepared remarks is merely the starting point. The executive team also requires detailed briefings on key talking points, critical line items and other vital preparations for a flawless presentation. Furthermore, IR professionals must align on internal performance expectations, manage outlier forecasts, address any deviations from guidance and determine which metrics may warrant close attention from stakeholders.

IR teams frequently face logistical challenges that drain time and hinder productivity, including the consolidation, normalization and interpretation of KPIs and line items. The need to manage multiple brokerage platform log-ins and the urgency of accessing, aggregating and normalizing real-time sell-side data compound these challenges. Moreover, maintaining a competitive edge requires a comprehensive understanding of the IR team’s company and competitors, achieved by efficiently analyzing and comparing brokers’ models.

The undeniable need for solutions that seamlessly and efficiently integrate with workflows becomes crucial during the high-stakes earnings season when deadlines loom and last-minute revisions intensify. IR teams require frictionless, reliable and auditable access to data and models. Building trustworthy access to sell-side analyst expectations stands out as a must-have for mitigating stress and errors during the earnings call.

The West Coast Think Tank discussions highlighted the urgent need for seamless solutions as earnings season approaches, especially in the last critical hours. The objective is clear: be efficient, accurate and confident to navigate the complexities of earnings season.

Giuseppe Montefinese

Giuseppe Montefinese is contributor relations manager at Visible Alpha