Earnings calls represent an important advertising opportunity for Sell-Side Analysts. Ask a question and wait for the Buy-Side calls to roll in over time. Many analysts are frustrated either by not being allowed to ask a question or not getting the first question on the call.
The frustration is prevalent.
Give me an Investor Relations Officer and I guarantee that he or she has more than one analyst the company does not want asking questions on the earnings call.
The Sell-Side needs to remember extensive preparation and thought goes into building the earnings call and earnings materials. Several weeks of prep and review go into developing the call script, earnings release, Q&A session, and investor deck.
Ultimately, the earnings call represents management’s opportunity to convince the Street that they are the right people to run the business on a day-to-day basis. If your actions do not support this end, then you are likely going to be unhappy with your earnings call participation.
