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.
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.
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!
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!