Earnings. Whether the company misses, meets or beats expectations, communications shape how analysts and media report on your numbers. You can generate excitement, proactively answer questions and instill investor confidence with a compelling earnings release narrative and smart media strategy. It’s especially important to hit the mark during times of economic uncertainty. Here’s how to make your earnings release resonate.
Telling your earnings story
Lead with the numbers. Reporters will first be looking at key metrics, like revenue, AAR, annual customer value and remaining performance obligations, to name a few.
You also need to provide context in your earnings release. Build a story that explains any major changes, successes or missed targets for these metrics. Address any shifts in your forecast. Set the tone for what investors can expect from future earnings.
Work with investor relations to determine the messages you want to deliver. What are the most relevant details about your company’s financial performance? Who should be quoted, and what can they say? What do you want stakeholders to take away?
In tandem with the release, you may want to document answers to the questions you expect reporters and analysts to ask — especially if you anticipate any negative reactions. Reporters will come prepared with historical data about your company. Getting ahead of FAQs can ultimately give you more control over the narrative.
Examples could include:
- What’s changed over the last 90 days? Saying that nothing has changed since the previous earnings release isn’t newsworthy. Give reporters something to get excited about.
- What’s different about what your company does? Set your company apart. Remind reporters, analysts and investors about what your company does well and show them why it’s a worthwhile investment. Steer clear of disparaging the competition when answering these types of questions.
Land your message with the media
Once the earnings release is approved by all internal stakeholders, assess your media strategy. If the numbers aren’t ideal, you can still consider \proactive outreach. Media may create their own narrative in a vacuum. It’s better to inform the external narrative. Pick a “friendly,” balanced reporter, someone who are not likely to give a story a salacious headline just for clicks.
Pick the right spokespeople, and train them ahead of time, both on messaging and tone. The more prepared, the better they’ll be able to stick to the script and communicate confidently — even if there’s a slump. Reporters are savvy and will pick up on a defeatist or pessimistic mood.
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Download Highwire's earnings Q&A with Tiernan Ray |
4 don'ts in earnings communication
Even with a refined message and strategic media engagement, people make mistakes. There are a few common errors you can avoid in your earnings communications:
- Don’t forget that everything is on the record. Even the most media-savvy executives can misspeak. Remind them not to say anything that they don’t want to see in print or online. And be sure their talking points are compliant if you’re in a regulated industry. Focus on highlighting your company’s wins.
- Don’t disparage your audience. Expect analysts and reporters to be tough. It’s their job to ask the hard questions. But we’ve heard companies get defensive and dismiss their expertise, saying they don’t understand the industry. Never disparage these important influencers, as they ultimately will be the ones telling your story.
- Don’t hype the stock price. It’s easy to get caught up in hyping up short-term gains, but fixating on the stock price alone conveys a short-term mindset. Investors want to see a long-term sustainable growth strategy. Focus on communicating the bigger vision.
- Don’t get ahead of the facts. Earnings can be an exciting time, but spokespeople should not make promises the company can’t keep. For example, they may announce that a product is coming out in the next year, when the roadmap is further out. Verify and have the facts on hand.
Make the most of earnings communications
Earnings gives you the chance to hone your message and present your vision to investors and those who cover your industry. At Highwire, our experts can help you make the most of these moments in time.
Speaking of experts, we wanted to give you a first-hand account of what reporters look for when covering earnings. Listen to our interview with technology journalist Tiernan Ray, who shares his experience.
