[Guide for IR Teams] Don’t Miss Insights Next Earnings Season: 5 Ways to Optimize Your Time

Why We Wrote This Guide

During earnings season, Investor Relations professionals are drowning in data. The tens or even hundreds of peers and analysts they track produce hundreds of pieces of data, documents, and news every week that could inform a change in earnings calls strategy and language or a response to management and stakeholder requests.

Getting through the deluge of information that becomes available each day can seem like an impossible task.

How can investor relations professionals get through earnings season documents and extract relevant insights quickly?

We’ve identified 5 best practices that you (and your team) can apply to optimize your time during earnings. Get the full guide here.

Get to the most relevant peer and analyst information in minutes to improve confidence in your strategy and drive changes in external messaging and earnings call narratives.

 

 

 

How well are your peers actually doing?

The documents that they’ve filed with the SEC are a gold mine of information. Before and during earnings season, you’ll want to stay on top of peer news and announcements, as well as related analyst commentary and sentiment.

Earnings call transcripts help you understand how peer management is positioning their company and how analysts are reacting. A company’s annual 10-K filing, specifically within the “Outlook” or “Use of Proceeds” sections, shows if they’ve used capital to expand or grow, to repay debt, or to support general operations. Can you see specific plans for this capital?

Annual reports (among many other document types) can also give good insight into product research and development (R&D), which can include everything from initial product design to compliance testing, to new market deployment. Track exactly how much your competitors are spending ?on innovation, and where they are reducing investment.

How To Do It

Use a tool that allows you to search across all document types, and even within specific document sections.

Get alerted when new competitor documents are released, whether they be an earnings call transcript, a press release, a 10-Q covering the company’s quarterly performance, an 8-K for material events (acquisitions, changes in corporate management, or updated fiscal year end-date), or an S-1 for an IPO.

Get alerted on specific company and keyword searches like “NVDA > R&D > automation,” so you’re always in the know about your competitor’s roadmap and benchmark language.

Sentieo Document Search and Alerts

Key catalysts to track include earnings announcements, product launches, and transactions. Use a calendar tool that automatically feeds in from your company watchlists.

For example, below we used our watchlist “Big Tech” to auto-populate our Sentieo earnings calendar for easy tracking.

Sentieo Earnings Calendar

 

During earnings season, you want a tool that allows you to get instant insights as soon as a transcript is released. Answering the questions below will help you make more strategic decisions in the future:

• What are consumers, analysts, and management teams saying about your peers?

• What is the sentiment towards your own company?

• What is the sentiment of your peers on earnings calls?

• Are your peers positive around certain topics? Or negative and deflecting?

How It Works

Try using a tool that tracks and manages sentiment in an efficient and meaningful way.

For example, Sentieo’s Smart Summary™ categorizes an earnings call transcript’s sentences for easy insight (i.e. by “Guidance,” “Financials,” or “Deflection”). It also color-codes sentences according to whether their sentiment is positive or negative — for easy, at-a-glance analysis.
Sentieo allows you to automate the receipt of transcript analysis reports to your email inbox, which can save you lots of time during earnings season!

Sentieo Smart Summary Transcript Analysis

To learn the other 2 ways to avoid missing insights during earnings season, download the full guide here.

To try Sentieo, request a trial or custom demo with us!

Taking a Data-Driven Approach to Alpha Generation: Part 2

Over the last few years, we have seen the not-so-gradual evolution of investment marketing, from the rise of indexing and quantitative strategies to the explosion of alternative data and fee compression. The need to “research different” to maintain your edge is greater today than ever before. But despite the changes, there remains one major thing all successful investors do: correctly identify trends. 

Over the coming weeks, we will cover three different strategies to overcome overreliance on hunches, intuition, or biased views and start quantifying and visualizing investable trends, to ultimately generate alpha faster. You can skip ahead and read the full report here.

A couple weeks ago, we covered everyone’s favorite industry buzzword: alternative data. Today, we switch gears and focus on how to capitalize on your internal datasets for alpha generation.

When looking to “supercharge” research, it’s important to include internal proprietary data sets, such as search statistics on corporate documents, like earnings call transcripts. Unlike alternative data sets, which are widely available for purchase, document search statistics are your own internal proprietary data set. These can be a powerful source for trend identification and verification.

One example of this is the short-lived “gluten free” fad. A quick search of conference call transcripts that mention “gluten free” show that while gluten intolerance is in fact a real issue, it really only impacts a small percentage of the population. As a result, the corporate response clearly came and went

Another example is the opioid crisis. In this case, search statistics help quantify metrics for risk management purposes. For example, we can see that the number of 10-K filings with Risk Factors that mention “opioid” or “opioids” have increased substantially over the years

Search statistics for documents can also be combined with financial metrics to spot trends in an industry group as a whole. For example, combining restaurant industry transcript mentions of “wage inflation” against the average adjusted EBIT margin for a group of US casual dining chains shows that the margin peaked and started to decline shortly after document statistics pointed to increasing wage pressures

But these internal datasets can do more than just verify or quantify trends, they can also help you spot trending terms as well as “equivalents” to help you generate ideas and develop a thesis. For example, looking at all corporate documents for YUM! Brands (global parent of KFC, Pizza Hut, and Taco Bell), we can identify company-specific trending topics.  

This same concept can be applied to searches for document types: searching 10-K filings with the SEC for Vietnam and other Southeast Asian countries are trending in the mix.

Most importantly, search statistics for documents are entirely your own proprietary data set. Because they’re not available from the data vendors, they are your own competitive advantage and enable you to preserve your edge for longer.

Next week, we’ll cover how to create powerful visualizations over time using sector-level financial metrics. If you can’t wait that long, you can download the full report here.