Buy-side and sell-side analysts interviewed in the Asia region by IR Magazine say clarity is the highest priority when earnings announcements are made, with 56 percent of respondents citing it as the most important factor, followed by an effective Q&A at 55 percent, detail at 51 percent and the involvement of senior management at 50 percent.
In line with these findings, the issue of clarity ‒ or the lack of it ‒ is frustratingly commented on by one contributor: ‘The company changed its reporting segment from core products to regions and arbitrary classification’. Another complains: ‘It was poor that the company adjusted the definition of data according to the situation’. Yet another notes simply: ‘More disclosure, please’.
The importance of clarity is also expressed more positively: ‘A good, detailed approach and breakdown by segment, providing the latest market information’.
When it comes to the Q&A, one respondent comments: ‘Don’t go too long before getting to the Q&A’, stressing the importance of this part of the announcement for analysts. Another says: ‘Good presentation, went through it briefly with plenty of time for the Q&A’.
Other comments include:
‘Timeliness is one thing, but it is more important for earnings to be detailed.’
‘Please leave a gap between the release and conference call to allow time to digest and prepare.’
‘Companies that change their reporting basis risk appearing less transparent than they are.’
These are all issues for IR professionals to consider for future calls and events.
