Increasing Transparency with Earnings Date Revisions During COVID-19

Institutional investors increasingly rely upon earnings date revisions to help formulate trading and risk strategies. Recent academic research has shown that tracking changes to earnings announcement dates can help investors generate additional alpha or mitigate risk in their portfolios.

By keeping financial professionals apprised of critical market-moving event revisions, they can opt to take advantage of—or avoid—short-term volatility in given equity or its underlying option.

With market volatility nearing an all-time high, many investors and risk managers might be wondering how to weather the blow. Advances in corporate-event fundamental data sourcing, algorithmic processing, and deep-bench human curation is a cost-effective quantamental approach to enhancing the efficacy of any risk management operation.

While the coronavirus pandemic caused the SEC to allow companies the option to extend quarterly earnings announcements past their normal filing due date, it has also created a new horizon for detecting both positive and negative “corporate body language.”

Questions for Institutional Investors and Traders

We can investigate the impact of recent earnings date revisions by asking the following questions for institutional investors and traders: 

  • Has the company taken advantage of the SEC earnings date delay facility? If so, to what extent?
  • Conversely, in spite of new regulations allowing for earnings announcement delays, which companies are going in the opposite direction and expediting their quarterly earnings announcements?
  • Has the company suspended or canceled dividends?
  • Are any mergers and acquisitions (M&A) being canceled due to COVID-19?
  • Are companies changing their investor conference presenters? If so, who is now presenting and what is their job title?
  • What class action lawsuits are now being filed due to COVID-19?
  • Are there more biopharma PDUFA applications? Are companies more likely to collaborate and sponsor new drug development? If so, what companies and can I see the source documentation?
  • Can I tap your analysts to answer my own specific questions?

To shed light on these questions and the recent increase in earnings date changes, we examine the status of earnings season, confirmed earnings date revisions, and the confirmed earnings date outliers (Z-score) provided in this week’s Wall Street Horizon Coronavirus Event Impact Report.

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