Earnings call
The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject. (February 2023) |
An earnings call is a teleconference, or webcast, in which a public company discusses the financial results of a reporting period ("earnings guidance"). The name comes from earnings per share (EPS), the bottom line number in the income statement divided by the number of shares outstanding. The US-based National Investor Relations Institute (NIRI) says that 92% of companies represented by their members conduct earnings calls and that virtually all of these are webcast.[citation needed] Transcripts of calls may be made available either by the company or a third party.
The calls are usually preceded or accompanied by a press release containing a summary of the financial results, and possibly by a more detailed filing under securities law. Earnings calls usually happen, or at least begin, while the stock market on which the company's shares are traded is closed to trading, so that all investors will have had a chance to hear management's presentation before trading in the stock resumes.[citation needed]
Generally, the call will begin with a company official, typically the
There is no general requirement for how far in advance notice of a call must be given. However, keeping the investor and analyst communities happy is part of management's job, so the call will generally be announced a few days or weeks in advance. If the company has a website, then there will probably be a section titled Investor Relations or Investors, where call schedules and archived past calls will typically be posted.
Many companies are tracked by financial analysts that publish estimates of earnings per share (EPS). The company may also provide
In 2013, the National Investor Relations Institute (NIRI) published Standards of Practice: Earnings Release Content, available to NIRI members.[1]
United States
If the call occurs within 48 hours of a press release filed with the
Companies headquartered in the United States with securities traded on a US-based stock market or other exchange are required to file audited annual reports with the SEC on Form 10-K following the end of a fiscal year and unaudited reports on Form 10-Q following the end of a fiscal quarter. These companies announce earnings and generally hold an earnings call quarterly.
Some companies with shares publicly listed also have
References
- ^ "Standards of Practice: Earnings Release Content". National Investor Relations Institute. 2013.
External links
- "Transcripts". Seeking Alpha. Recent earnings call transcripts.
- "Earnings Call Transcripts". Seeking Alpha. Recent earnings call transcripts. Information directly from the company on their operating performance.
- Earnings Conference Call Best Practices. Communique Conferencing Blog. September 4, 2019.