Company Earnings Calls

24 Nov

Being a public company, or a publicly traded company, means that a company offers securities (stocks, bonds, etc.) that are available to the general public to purchase. That means that the people investing in the company’s future success will want to keep a close eye on how the company is doing financially.

 

Each quarter, most public companies (about 92%) hold earnings calls that detail and discuss the company’s financial results over that period of time. Most of these calls are preceded by a press release that summarizes the company’s results. In general, conference calls are also conducted while the stock market is closed, so that investors have a chance to make a decision about trading stock before it opens again.

 

The call begins with an operator, who reads a safe harbor statement and introduces the company official(s) who will be presenting. This will usually include the Chief Executive Officer or the Chief Financial Officer, such as Moody’s Raymond McDaniel or Disney’s Robert Iger.

 

Advance warning for earnings calls are not required, but wise companies know that keeping investors and analysts happy is important; therefore, calls are usually announced at least a few days before they occur. Companies can also provide press releases, detailed reports, and webcasts of the earnings call. It’s also common for transcripts to be made available, such as KKR’s latest report with Pam Testani, Bill Sonneborn, and Mike McFerran.

 

Such resources allow investors to keep tabs on companies that they hold securities, helping them make more informed decisions on their holdings. Calls will sometimes report what earnings per share are, and what they’re expected to be in the future.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: