Earnings Call Transcriptions: Why Investors Need Them
In the financial industry, earnings calls (or earnings conference calls) are an expected event every quarter. Investors and analysts must participate in them to gain valuable insights. However, earnings call reports can contain a significant amount of information that can be difficult to retain simply by listening. This is where earnings call transcriptions can assist investors and analysts.
In this helpful article, you can learn:
- What exactly are earnings calls?
- Why investors and analysts need earnings call transcriptions
What Are Earnings Calls?
Before we delve deep into why investors and analysts need transcriptions of earnings call reports, we must first learn and understand what they are. For those who aren’t familiar with this concept, earnings calls are conference calls that occur every quarter to discuss the company’s financial results for that time period.
When earnings calls occur, analysts and investors are usually in attendance to hear the report. However, there are many things discussed during an earnings conference call. Retaining all that information can’t be done by just paying attention to the report. As such, many financial companies record these calls and enlist the services of a transcription company to create earnings call transcripts for them.
Why Are Earnings Call Transcriptions Essential for Investors and Analysts?
They Act as References for Investors and Analysts
One of the reasons transcriptions for earnings calls are essential for investors and analysts is that they act as a reference for them. Often, earnings calls will lead to specific discussions between themselves or with upper management regarding the steps they took for the quarter. By having these documents on hand, they’ll have the necessary information to keep up with the discussion.
Additionally, by having transcriptions of earnings calls, investors and analysts will have an easier time formulating and contributing their own ideas on how to help the company improve and earn more revenue in the coming quarter. As such, it’s always a great idea to turn to a transcription service to have a company’s earnings call report transcribed as soon as possible.
Earnings Call Transcriptions Disseminate Information to Shareholders
Companies have a responsibility to report to their shareholders regarding their profits and performance every quarter. An earnings call is often where the information for this report is taken from. However, it’s difficult to recount every single detail of these calls to your shareholders, who are often incredibly busy people, verbally or otherwise.
This is where transcriptions can come in and help investors and analysts. With earnings call transcripts, investors and analysts can transparently disseminate the information that shareholders require. By providing them with the transcript of the earnings call report, shareholders will be able to review the company’s quarterly profits and performance as well as the company’s plans for future improvement.
Earnings Call Transcripts Help Highlight Changes in Performance
Even if a financial institution performs well for the quarter, it still needs to think about how it can improve for the future. Without performance improvements, a company will become stagnant, which can result in losses and poor performance.
During earnings conference calls, investors, analysts, and even the media are informed about any changes in the company’s performance measures. With a transcription of the earnings call report, these changes are highlighted even further as they’re included in an official written document. In addition to highlighting changes, earnings call transcriptions also show if a company has stopped discussing a performance measure that was once considered essential, indicating that the measure has failed and has resulted in losses.
Thanks to the transcriptions of the earnings conference calls, transparency is further increased, and investors and analysts can even determine if the changes in performance measures will be helpful for the company to thrive.
They Act as Forward Guidance for Investors and Analysts
Another reason a transcription of an earnings call is useful for investors and analysts is that it can serve as a guide for future reference. Often, earnings conference calls discuss the company’s future direction. This is because they can highlight any challenges they may face and growth opportunities that they can take advantage of during the discussion.
By turning to transcription services to transcribe earnings calls, investors can review the document to make informed decisions regarding any investments they’re considering. Analysts, on the other hand, can use the document to help a company improve its overall financial health. This highlights the importance of having the audio files of an earnings call transcribed more than ever.
Earnings Call Transcriptions Help Investors and Analysts Better Understand a Company’s Prospects
Finally, transcripts of earnings calls help investors and analysts better understand their company’s prospects in the long run. Earnings calls reveal a wealth of information regarding financial results and future outlook. When analysts and investors look at this information, they can gain a larger understanding of a financial institution’s growth potential. The information they glean from the transcriptions can even let them know when to buy, sell, or hold on to stocks.
Additionally, transcriptions of earnings conference calls can reveal broader investment strategies that can aid the company’s prospects. This is because they can use these transcriptions to identify emerging trends within a particular industry or sector, which they can then leverage for better growth.
The financial sector is a fast-paced industry that investors and analysts need to keep up with constantly. However, the information from earnings calls and shareholder meetings can be challenging to retain. With financial transcriptions, however, you can have a documented version of everything that was discussed in every meeting. If you're planning to turn to transcribing services to create your transcriptions for you, turn to the experts at TranscriptionWing.
TranscriptionWing has over 25 years of industry experience, providing high-quality transcriptions to various sectors such as finance, academia, market research, and legal. We offer precise and accurate transcripts at affordable rates. We also have a wide variety of turnaround times, ranging from rush four-hour delivery to next-day delivery. Learn more about our financial transcription service and order your precise and accurate transcriptions today!
