Great quarter guys!
Two accounting professors at Florida International University published a study of the language analysts use on conference calls. Analyzing more than 16,000 earnings conference calls from almost 500 companies over a 10 year period, they found that analysts spoke the phrase “great quarter” roughly 3,000 times. They said “good,” “great” or “strong” more than 215,000 times. According to the Wall Street Journal, there’s even a Twitter account with a jaded view on earnings news called @greatquarter.
The study raises the question, who benefits most from the quarterly conference call? For companies, the calls are a matter of regulatory disclosure and much of the call's details are clarified during individual telephone conversations with analysts after the call. But for analysts on the conga line of questions, it’s a chance to showcase their knowledge about the company to competitors and maybe even a few investors (i.e. clients) who are listening in. A skeptic might also say analysts throw in “great quarter” flattery with the hope of attaining face time for their clients with companies’ top executives. One thing is true, trading commissions have declined since the financial crisis leaving analysts’ firms more dependent on corporate access revenue. Read more here
Speaking of face time
….Gary LaBranche, NIRI’s new CEO, is coming to meet the NIRI New York community on Monday, April 3 at 6:00 pm at Vermilion in midtown. Please stop by to say hello to Gary and join us for a beverage as we welcome him to NIRI. Click here
NIRI New York NextGen
hosted a fun speed networking event on February 28. If you are newer to the workforce and have been in IR for less than 5 years – you can join NIRI New York AND
national for only $300! Contact Deb Wasser, our head of membership, to see if you qualify for this valuable offer. Email Deb Wasser
In Local News…
Hold the Date for Crisis Communication Essentials for the Successful IRO on Friday, May 19 at the NYSE
roster of all-star IROs join us to share their lessons learned during this half day session. Details to follow.
Attend NIRI’s annual conference from June 4-7th
in Orlando, Florida and learn how to Break the Mold, Defy Convention, Shatter Expectations and Shape the Future of IR. Click here
for full details and registration.
The New York Board is heading to the IR Magazine Awards
tonight. Hope to see you there!
President, NIRI New York