Earnings season is approaching…
There’s rarely been this exciting earnings season around the corner. Here’s a checklist of five things to consider when planning your earnings release from investor relations’ perspective.
1. 🍀 Compelling message. In today’s information overflow, sharp messaging is a key to attaining investor interest. It might sound self-evident, however, to stand out in the information overflow, there is no better way to stand out in the competition than precise, sharp, and strong messaging.
2. 🍀 Speak to both new and current investors. Remember the diversification of your investor base. What do analysts and long-term institutions look for, and what kind of information do new investors, “newbies” value? New investors are the ones every company should be going after because they typically drive new liquidity for a share.
3. 🍀 KISS – keep it simple and stupid – (if you can…:). Think if an investor only has 2 minutes of his/her time to focus on your company’s release? It might sound frustrating after having spent long hours preparing the earnings release, however, this is a more usual situation than one might think. Help your investors grab the essential information fast, not having to scroll down to page 18…
4. 🍀 Remember the investors’ perspective. Investors look for continuation, growth, profit margin perseverance, industry outlook, and future outlook – to mention only a few. When preparing a release, think about your audience, what do they really value? What topics are they interested in? Deliver them (if possible😊).
5. 🍀 Trends and uncertainties in the external world in 2024. How does your forward earnings guidance relate to e.g. inflation rate expectations or other trends in a company’s specific industry (such as IT)? Sensitivities? One interesting topic could be leveraging AI in your company’s industry in the long term. Yes, it’s a long shot today, I know, however, this topic might raise questions at least in some industries such as in IT.
PS. Need a boost with engaging investors in this earnings season? If you feel that the current traditional investor activities are not necessarily enough in today's world, or you need a real boost for this upcoming season, don't hesitate to call or have a chat. Book a virtual chat with me (link here). Wishing a great continuation of this year to all 🍀