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EFFECTIVE MEDIA STRATEGIES FOR COMMUNICATING QUARTERLY EARNINGS
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THE GAME HAS CHANGED
Financial media are one channel through which companies communicate their earnings messaging and corporate strategy to financial audiences. With shrinking budgets and staff, many media outlets are decreasing their coverage of earnings or treating earnings dates as non-events. To complicate matters, many editorial outlets are automating earnings coverage, instead utilizing a formulaic approach that does not include messages or contextual and qualitative information. However, there are strategies that a company can employ to encourage thoughtful earnings media coverage.This brochure provides an overview of earnings media trends, specific tendencies of key publications and initial recommendations for generating more favorable coverage.
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EARNINGS COVERAGE PATTERNS
Based on research of a broad selection of companies’ earnings coverage, we found several key takeaways about how media handle earnings reports:
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Articles are more likely to be written when the stock price reacts significantly.
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If a company is in the news cycle for another reason (product news, executive moves, investor challenges), quarterly earnings are more likely to be covered.
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Larger companies are likely to attract more stories with higher word count.
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Reporters do quote comments from earnings calls, but they quote the press release more frequently.
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Almost all stories compare reported results to the last year’s earnings from the same period.
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Most stories refer to consensus and whether or not companies beat estimates.
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Some companies receive dedicated coverage (standalone articles), whereas others are grouped in industry round-ups.
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A company’s performance is often compared to peers, so date of earnings announcement dates matters within a specific sector.
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Outlets compete to be first with news, so key metrics are often plugged into standard story templates that may be updated with more context later.
Coverage Volume Correlates to Market Cap
Almost half of earnings stories include quotations from press releaseMost earnings media stories include estimates miss/beat
Typical Coverage Elements
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