The Juiciest Part of the Call

07 April 2009

What is the juiciest part of a company’s quarterly earnings call?
It’s not the financial detail.
It’s not the CEO’s prepared remarks.
It’s not reiterating a story that has already been told in the earnings press release.

It’s the question and answer portion call.

It’s unscripted.
It’s not staged.
It’s where you get to hear what analysts (the Street) really want to know.
It’s where you get to hear what management really thinks.
It’s where you get to hear how good (or bad) management really is.

Now, ask yourself, how long does your company’s management team spend on preparing for the Q&A? Perhaps more importantly, are they preparing in the right way?

As one analyst put it – the prepared remarks is where I find out how good the company’s writers are. The Q&A is where I find out how good the management team is.

2 Responses to “The Juiciest Part of the Call”

  1. Michael Salter

    Excellent point. Preparing for the Q&A is critical but often seems to fall to the bottom of the pile.

  2. Rob Berick

    I would agree that the prepared remarks are not helpful if the company is merely reading the press release. Done properly, the prepared remarks should drive the Q&A by giving greater insight into the company’s performance and future opportunities.

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