Tools to enhance your earnings season analysis
Now more than ever, delivering successful investment ideas depends on managing complexity and consistently outthinking the market. Financial analysts need comprehensive insights into whether a company has met or missed broker expectations. And with earnings in full swing, it’s time to get prepared.
A recent Bloomberg webinar takes participants through recent market activity and explores vital equity tools designed to help analysts save time and react quickly during earnings season volatility. Key takeaways shared by Market specialists Robert Fairbairn and Phillip Capone include how to manage coverage with greater efficiency, how to identify and rapidly respond to new catalysts, and how to utilize the power of natural language processing and AI analytics. Watch the recording here.
The ‘Earnings Season Toolkit’ comprises of four key pillars for analysts: Prepare; Anticipate; Interpret; and Action and Communicate.
Pillar 1 – Prepare: Events Management & Tailored News
Earnings season releases are a crucial part of effective analysis. “With such uncertainty and so many moving parts, it is imperative that you approach third-quarter earnings with all the resources available to you. This will allow you to make the very best decisions for your clients’ money,” said Fairbairn.
For example, EVTS <GO> enables you to stay up to date for event resources on a specific company, portfolio, watchlist, or index. Link your portfolio or watchlist to get real-time company releases. Available event types include live and final transcripts, investor presentations, models, and estimates. These can be grouped, labeled, filtered by date, and integrated with Microsoft Outlook so you don’t miss a beat.
Pillar 2 – Anticipate: Estimates & Earnings
Understand what the market expects ahead of company releases using various estimate tools at EE <GO>. Noteworthy features here include earnings histories, price plotting and individual analyst forecasts.
The earnings estimates graphing tool or EEG<GO> can visualize how consensus sales side estimates have changed through time on a single stock plot, or on a range of financial measures and periods to understand how the company is perceived by the market and what is already built into the price.
Pillar 3 – Interpret: Company Financials & Document Search
Being able to absorb, interpret and understand company financials during earnings season reporting is vital to staying ahead. Bloomberg’s latest earnings tool, MODL <GO>, empowers analysts to do just that. It is a Terminal function that allows an analyst to prepare and gain instant insight as earnings update in near real-time.
Combine the power of quantitative information on MODL <GO> with the qualitative available on DS <GO>. At DS<GO>, analysts can spot trending topics from earnings calls on a single stock, an industry, a portfolio or index. AI topics and Natural Language Processing helps you search for key information and understand what is driving earnings surprises. This saves you time for unique interpretation and valuation assessment.
Pillar 4 – Action and Communicate: New IB Forums
Timely and effective communication among colleagues drives individual and team performance during this crucial time of year. IB Forums is a new chat medium that powers collaboration in the sharing of research insights in a structured way. Centered around customizable topics and themes, it empowers on-the-fly chat in new ways of frictionless sharing, all built and focused on the needs of front office investment professionals.
“As the volume of shared content grows over time, its informative value grows exponentially. The Forums become a living, growing library of research content and discussions between you and your colleagues,” explained Capone.
In conclusion
Delivering successful investment ideas depends on quickly and effectively digesting, analyzing and reacting to newly released company filings, particularly during earnings season, when staying ahead of the pack is vital.
A recent Bloomberg webinar supports analysts to do just this by presenting four key pillars of Bloomberg Terminal’s equity tool functionality for analysts to draw on: Prepare; Anticipate; Interpret; and Action and Communicate.
The webinar also takes participants through a quick markets recap from 2Q22. Key themes include inflation throughout the world being dealt with in a delayed fashion by most central banks, real interest rates remaining significantly negative in most economies, and significant volatility in the currency and bond markets.
Stay up to date on these issues and more via Bloomberg Terminal and take your knowledge and analysis to the next level.
To get started or learn more, attend the webinar or request a demo.