Positioning an Earnings Miss to Analysts and Investors
A high growth, high multiple, small-cap healthcare service company was struggling with quarterly results and the implications to the current financial outlook. This was the first quarter as a public company that would be below Wall Street’s expectations. The company wanted assistance in crafting the message for the quarter and a future growth strategy.
ICR Westwicke’s Role
- Assessed the situation and identify the reason for the shortfall
- Led conference meetings with senior management
- Crafted the talking points for the conference call script
- Drafted the CEO quote for the press release
- Prepared the potential analysts questions
- Stress tested the new guidance and discussed the impact to current consensus estimates
Although the stock dropped 37% following the earnings report, the research notes from Wall Street on the quarter indicated that the analysts clearly understood the changing business dynamics and were patient with management. ICR Westwicke worked with the company to help them maintain the strong relationships they cultivated with their sell-side analysts and top investors.