Capital Markets / Investor Relations in Two Minutes or Less
Earnings Calls: A Corporate Perspective

For corporate executives creating an earnings call, one premise governs the entire process: Do Not Trip Reg FD!

The goal is to minimize downside risk, and therefore script and prepare as much as possible.

What does scripting mean?

Create estimated questions or comments so that we can prepare the executives with bullet point answers, so as not to trip up Reg FD during the call, live Q&A, and call backs!

Executives are human and sometimes need prompts or triggers to ensure the right message is delivered and they feel both set up for and feel they can accomplish success.

There is no room for insane or wacky surprises!

Therefore, Q&A represents a significant risk for corporate executives regarding Reg FD.

How Can a Sell-Side Analyst Ensure a Question During Q&A?

1. Thoughtful and / or Unique Value-Add Research
2. Quality of Investor Meetings
3. Investment Banking Relationship: Treasury and Lines of Credit

Right, wrong, or indifferent, an analyst working for an Investment Bank that puts its balance sheet to work for the company will always have access.

A public company cannot afford to disrupt a banking relationship that is essential to run the day-to-day operations of the underlying business.

Like an investment banking deal, getting a question is a jump ball for all the other Q&A slots, and we will do our best to be egalitarian.

How Do You Get the First Question?

1. Are You a Supporter of Management?
2. Are You Willing to Ask a Question that Helps Set Q&A Up to Be Successful?

If an analyst is supportive and willing to set Q&A up for success they have a great shot at the first question.

Variables Driving Participation and Question Slot Order

1. Best Research that Quarter
2. Management Respect
3. Best Relationship w/ Top 20 Investors
4. Investment Banking: Credit and Treasury Services
5. Who Do Investors Like Best that Quarter
6. Elephant in Room
7. Willing to Set Up for Success in Q&A

Investor Relations Officers should strive to be advocates for their Sell-Side Analysts. Sometimes, giving a new analyst, a chance can really drive your stock and thesis forward!

Playing games with Q&A access or radical positivity are problematic. The Buy-Side and Sell-Side will see through the tactics and punish the stock accordingly.

If you avoid triggering Reg FD, are supportive in terms of driving success, and take a dispassionate approach, you will likely get to ask a question on the call!