The Top 10 Sites For Stock Data, Charting & Events
CI editors list and review the best stock investment websites.
Conference calls & corporate events
The earnings conference call is a way for companies to relay information to all interested parties—including institutional and individual investors and buy- and sell-side analysts—as well as to fulfill legal requirements. Legally required quiet periods prior to the conference call build investor anticipation and heighten its importance. Conference calls allow companies to highlight successes during prosperous times and calm fears during adverse ones. The most popular time for companies to conduct these calls is immediately following the release of financial results, typically at the end of each quarter; these are known as quarterly earnings-results conference calls. Conference call participants usually include the chairman, CEO, CFO and, depending on the company and the events under discussion, various other executives, though it can vary as circumstances dictate. These individuals provide an overview of all the major issues that affected the company’s performance during the previous quarter. Discussions usually also focus on what can be expected from the company in the upcoming quarters, known in the industry as “forward guidance.” Assuming there is no major surprise on the earnings release for the company’s recent quarter, it is this forward guidance that can have a significant impact on the stock price, particularly if it varies from current investor expectations.
Individual investors can also glean useful information from a company’s earnings call by listening to the analyst Q&A at the end of the company presentation. Here you can find out about the factors analysts focus on when creating their models for a company. When answering analyst questions, company executives will often provide additional color about their recent results and forward guidance.
Corporate events can include presentations at investment banking conferences, where a company executive (usually the CEO) updates investors and other market participants on the outlook for the company. In addition, we define corporate events to include activity such as mergers and acquisitions.