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Earnings Season: Difference between revisions
→Step 2: Research
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Before coming up with the draft, make sure to familiarize with the financial data. You should also peruse through them to ensure that nothing is missing. The draft should cover the following. | Before coming up with the draft, make sure to familiarize with the financial data. You should also peruse through them to ensure that nothing is missing. The draft should cover the following. | ||
a. Summary of Management Guidance & Most important KPIs and numbers Q2/2022 and Year 2021 | |||
i. You can already build up on the earnings expectations for Q2 2022. | |||
ii. For Management Guidance | |||
a. You can check previous quarterly report or conference call | |||
b. Reasons? What did the company say about this guidance? | |||
b. Analyst Expectation | |||
i. Numbers from Yahoo Finance (Analysis) and Zacks | |||
ii. You might check YouTube as well. | |||
iii. Is this higher or lower than last quarter why | |||
iv. Reasons | |||
v. What do they say about the numbers? | |||
c. Developments in Quarter | |||
i. Relevant macroeconomic or political news or developments | |||
a. Evaluate which news affects the company or the company’s industry/related verticals | |||
b. For example: for Rheinmetall, Ukraine-Russia tension is still escalating, and European countries are panicking | |||
ii. Company updates | |||
a. This can be about product, management, and more | |||
b. For example: for Spotify, Spotify Technology SA has started selling audiobooks on its US app. | |||
iii. Note the impact of the news in terms of what to include here. | |||
d. Management Guidance or Earnings Report of Competitors | |||
i. Which one to report for your company? | |||
a. If competitor still haven’t reported, their Guidance (Revenue,Income,KPIs) | |||
b. If competitor already reported, their Earnings Report | |||
ii. Add a short summary about competitor reports | |||
a. Is it good or bad? | |||
b. Reasons | |||