homepage-rotator-1.jpg

Our Blog: The Podium

Preannouncing Results, Part II: Determining the Message

This is Part II of our preannouncement series based on AlphaSense research. Today we focus on the qualitative discussion of the results in earnings preannouncements and the financial metrics used.

In my previous post, we focused on the factors that contribute to a company’s decision to preannounce its financial results – that is, provide the Street with a preliminary, high-level understanding of what its quarterly performance will be. Using AlphaSense, a unique search engine that offers an advanced level of information discovery, we looked at 59 preannouncement releases that were issued in the U.S. through the first six weeks of 2016. We examined the rationale for preannouncing and some of the issues at play when providing advance insight to investors.

Read More

Guidance, Investor Relations, Earnings, Preliminary Results, AlphaSense, Preannouncement

Preannouncing Results: Analyzing Corporate Profit Warnings

To preannounce or not to preannounce: Surely that is the question that stumps many management teams during the quarterly earnings cycle.

There are several reasons for a company to preannounce its financial results – that is, provide the Street with a preliminary, high-level understanding of what the company’s quarterly performance will be. Typically, a preannouncement is made in the weeks preceding the full earnings release and conference call. Management also may decide to update investors with preliminary results ahead of investor days, investment conferences and major acquisitions, so that it may speak about the most current financials and not violate Regulation Fair Disclosure.

Read More

Guidance, Disclosure Policy, CFO, Earnings Call, Earnings, Trends

Shareholder on a Shelf: An Earnings Tradition

By Dennis Walsh, Vice President

The Shareholder on a Shelf is a new tradition that has become the holiday gift of choice for IROs to their executive management teams. The story of the Shareholder on a Shelf is as follows:

“Have you ever wondered how the SEC could know;
If you’re naughty or nice in making your reported revenues and margins grow;
For 79 years it’s been a big secret;
Which now can be shared, if you promise to keep it.

At reporting time the SEC sends me to you;
I sit in the shadows to watch and report on all that you do;
My job is an assignment from Ms. Mary Jo White herself;
I am her helper, a friendly scout shareholder that sits on a shelf.

Read More

Holiday, Investor Relations Blog, Reg FD, Sharon Merrill Associates, Investor Relations Agency, Guidance, IRO, Shareholder Communications, Earnings Call, Investor Relations, Earnings, Investor Relations Firm, Activist Investors

The Guidance Effect, Re-visited

By Maureen Wolff, President and Partner

Three years ago, on the heels of the greatest collapse U.S. financial markets have experienced in decades, in conjunction with IntelliBusiness/eventVestor, we published a study, “The Guidance Effect: Improving Valuation” (PDF 875 KB), that evaluated the impact of increased transparency on equity valuation during the turbulent first quarter of 2009.

The findings supported the thesis that issuing quantitative financial guidance contributes to improved stock performance. Given the climate of fear and uncertainty that permeated Wall Street during the study period, we hypothesized that providing guidance – and thereby increasing transparency for investors – likely had an unusually pronounced affect on stock price behavior at the time.

Read More

Disclosure, Reg FD, Sharon Merrill Associates, Guidance, Earnings Guidance, Earnings Call, Investor Relations, Earnings, Investor Relations Firm

Confronting the Quarterly Quiet Period Dilemma

By Jim Buckley

One of the investor relations issues that companies often struggle with is the “quiet period.” Here I’m not talking about the SEC mandated quiet period related to IPOs, other public offerings or around the release of lock-up agreements. Those all have defined legal parameters and lines drawn around what companies can and can’t do. I’m referring to the quarterly quiet period – where individual companies determine if, when and how they want to stop talking to the investment community as they approach the end of the quarter.

The quarterly quiet period is one of those gray areas that investor relations is famous for, and there is certainly no one-size-fits-all approach for companies. The fundamental principle behind the quarterly quiet period (or QQP) is straightforward. At some point around quarter end, management has knowledge of the company’s quarterly performance. So investors start calling in the last two weeks of every quarter and asking “How are things going?” They want to get a read on upcoming results through tone and demeanor. As a result, over time, companies began to institute a quiet period with the Street to avoid taking these calls. Makes sense, right? But how does each company handle its QQP? That’s where things start to get a little fuzzy.

Read More

IR Program Planning, Disclosure, Reg FD, Conference Calls, Investor Meetings, SEC, Guidance, Disclosure Policy, IRO, Earnings Call, Investor Relations, Earnings

Investor Relations for the New CFO - Six Steps for IR Success

By David Calusdian, Executive Vice President & Partner

*Originally appeared on Samuel's CFO Blog. Samuel Dergel is Director and Search Consultant at Stanton Chase International. Mr. Dergel specializes in Executive Search for Chief Financial Officers.

As the new CFO of a publicly held company, somewhere on your extensive “to do” list is implementing an effective investor relations program. Whether or not the IR function was a well-oiled machine when you arrived, or virtually non-existent, there are key areas you need to address immediately to ensure that you are effectively taking the IR reins. So here are six steps for success as you accept responsibility for the IR function.

1) Understand your shareholder base. Research the investment styles of your shareholders to determine why they may have bought shares– and what might cause them to sell. See what type of investor concentration you have in your shareholder base. Identifying whether your shareholders are weighted toward a growth, value or income investment style, for example, can offer insight as to what they are expecting the company to achieve near or long term. Also investigate whether there are known “activist” firms among your shareholders, and what catalysts usually cause them to initiate a proxy fight. Make it a priority to speak with your shareholders by phone as soon as possible, and then meet them in person within your first few quarters as CFO. Also consider an investor perception audit to understand the sentiments of your shareholder base -- and identify any misperceptions about the company -- to most effectively build your IR program.

Read More

Disclosure, Reg FD, Board Communications, Conference Calls, Investor Relations Agency, Investor Meetings, Guidance, Disclosure Policy, Shareholder Communications, Earnings Call, Social Media, Investor Relations, Earnings, Investor Relations Firm

Developing an Investor Relations Program for an IPO Company [Video]

By Maureen Wolff, President and Partner

Companies planning to go public need to be able to hit the ground running on the day of the IPO pricing with an investor relations program. In order to prepare, Sharon Merrill President and Partner Maureen Wolff provides tips on what to do before and after the S-1 filing in the videos below.

Read More

Investor Presentation, IR Program Planning, Disclosure, Strategic Messaging, Investor Relations Agency, Investor Meetings, IR Website, Guidance, Board Structure, Disclosure Policy, IPO, Investor Relations, Earnings, Investor Relations Firm

Getting Ready for the IPO: 10 Investor Relations “To Do” Items Before the Pricing

For months leading up to your S-1 filing, you probably have been singularly focused on creating that massive tome. You have spent significantly more time with your lawyers and auditors than with your own family -- and you cannot even begin to imagine a time when you won’t be spending every waking moment with your bankers. So now that you’ve left the long nights (and great food spreads) at the financial printers behind, it’s time to focus on investor relations. You need to hit the ground running with IR as soon as your company prices its offering, so here are 10 “to do” items before then:

1) Develop your IR website. The IR website must be ready to go live on the day of your IPO pricing. It is most cost-effective to hire an IR website hosting provider, which will develop your site and aggregate content such as news releases, SEC filings and stock data. You also need to prepare additional content for your site such as “Frequently asked Questions,” management biographies and fact sheets. Your website is arguably the most important vehicle you will have to communicate with investors, so make sure it has everything that investors need and expect.

Read More

IR Program Planning, Targeting, Board Communications, Investor Relations Agency, Investor Meetings, Presentation Training, IR Website, Guidance, Sell-side Coverage, Disclosure Policy, IRO, IPO, Shareholder Communications, Investor Relations, Investor Relations Firm

Perfect 10 or Face Plant? IPO Success Hinges on IR Planning

On January 4th, the first business day of the new decade, Dow Jones VentureSource released figures suggesting that 2010 will be a stronger year for IPOs. They reported that eight companies completed public offerings in 2009, raising $904 million. This was a 64% increase from the $551 million generated through seven IPOs in 2008.

Looking ahead, VentureSource pointed to the 25 venture-backed companies that are currently in IPO registration as a sign that the market will improve as this year unfolds. The larger attendance and stronger sense of optimism at the most recent Deloitte Tech-Venture IPO Bootcamp, where I spoke on IPO investor relations, suggests the same thing.

So if the proverbial IPO window does open wider in 2010, a good number of venture-backed companies probably will jump through. This will send them into the hectic time of pre-IPO preparations.

Like skilled gymnasts or freestyle skiers, some of these companies will stick the landing. They’ll see good liquidity and strong underlying demand when their shares begin trading. Others will lose a few style points and generate only a tepid response from investors. For the underperformers, the leap into the public markets will conclude with a painful face plant.

Read More

Disclosure, Strategic Messaging, Presentation Training, IR Website, Guidance, IPO, Shareholder Communications, Investor Relations

Grab the Tiger by the Tail in 2010

Earlier this week I moderated a NIRI webinar with three senior-level investor relations officers representing the finance, real estate and retail industries. The panelists highlighted some new initiatives that IROs should consider in 2010 which, according to the Chinese calendar, is The Year of the Tiger. This just might have been the world’s only “Tiger”-related discussion in the past few weeks that had nothing to do with a certain golfer with a PR problem.

Within Chinese culture the number six is auspicious and considered good for business. So in keeping with this theme, here are six ideas that arose from the panel discussion that are worth considering as you develop your investor relations plan for the coming year.

Read More

Board Packages, Board Communications, Conference Calls, IR Website, Guidance, NIRI, Speaking Engagements, Shareholder Communications, Investor Relations, Earnings

Subscribe to The Podium!

Be Proactive, Not Reactive

With our new Proxy GamePlan, we create a year-round, data-driven strategic roadmap for effective shareholder engagement. Implement a best-in-class program rooted in a deep understanding of your company’s proxy practices, shareholder voting trends and peer landscape.

Learn More About  Proxy GamePlan

Find Effective IR Counsel

Whether you’re seeking external IR counsel for the first time or evaluating your current provider, you need a firm that understands your strategy, adapts to your culture and tells your story. Download our free guide on how to assess the effectiveness of an investor relations firm.

How to Assess  an IR Firm

Activism Defense

No company is immune to shareholder activism. Sharon Merrill helps boards of directors and executive management teams identify the activist red flags lurking in your shareholder base, assess your governance risks and develop an action plan to prevent, detect and neutralize any threats. Download our free white paper, “Leveraging Institutional Shareholder Relationships to Reduce Activism Risk,” and learn how the best defense against activism is a strong offense.

Download Activist Defense White Paper

Captivate your Audience

Speaking persuasively is critical in today’s competitive business environment. Effective speakers use voice techniques and body language that project authority and credibility. Download our free e-book, “A Guide to Delivering Captivating Presentations,” for insight into good -and bad- presentation habits, and learn how to improve your skills.

Become a Persuasive Speaker 

Perceptions Matter

How do you ensure that investors clearly understand your strategy, growth drivers and market position? The most effective way is through a perception study. By periodically taking the investment community’s pulse you can avoid the knowledge gaps and misperceptions that hurt valuation. Download our free whitepaper, Why Perceptions Matter, to learn more.

Why Perceptions Matter 

Common Topics:

More topics