One in four companies skips post-results follow-up with sell side

Aug 09, 2017
Research report also finds most companies manage order of questions on conference calls

Results announcements are a key event for IR teams to manage, requiring careful planning and confident execution. Among the many complicating factors is how to handle your sell-side coverage around these events.

A recent research report from IR Magazine throws light on how companies around the world approach tasks like follow-up contact and the order of questions on the conference call. The research, based on a survey of more than 650 IR professionals, finds that three out of four IROs on a global basis conduct post-results follow-up calls with analysts.

But the most interesting factor here may be that one in four respondents do not conduct post-results calls. The author of the report writes: ‘This surprising result may reflect the continuing diminution of the sell side’s role in setting and interpreting quarterly results as well as a disengagement of companies from the quarterly expectations game.’

Following up

The report also looks at the Q&A portion of conference calls, asking whether the question queue is actively managed. Overall, IR professionals favor a managed approach with more than 50 percent globally doing this. There is a clear split between European and North American respondents, however, with the latter much more likely to select the order of questions.

Looking at the results by market cap, there is a clear trend for larger companies (with correspondingly larger analyst followings) to manage the order of questions.

Question management

These findings are included in IR Magazine’s new report, How to manage your sell-side coverage, which is available to Professional subscribers. Please click here for more information on how to access the report.

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