Conference calls offer insights beyond the financial statements
Earnings conference calls are important
Earnings conference calls are important if you are an investor… and why is that? They provide insight and information about the company the financial information does not provide.
On an earnings conference call, you can hear the officials of the company speak directly, and hear their tone. Oftentimes the tone is a big player in discovering what is said, and the message the company officials are trying to convey.
Future Guidance
Listen in for future guidance, this is where stock price moves can happen drastically. A company may have reported a good quarter, but if the future outlook isn’t so bright depending on the language the company’s officers use, this could dictate drastic stock price moves.
The Q&A period
Listen to the questions asked by Wall Street analyst. The officer’s of the company typically might stray away from certain negativity in order to make their calls look good. Rumors or other juicy information that has rumored around, analyst might ask, and this is where they may dodge the question or just answer it. The language they use might sway the stock price one way or another.