An Earnings Call is a conference call between the management of a public company, analysts, investors, and the media to discuss the company’s financial results during a given reporting period.The purpose of an earnings call is for management to provide their analysis of the financial results and outlook for the future, answer questions from analysts and investors, and give guidance on how they plan to improve performance in future periods.The tone of an earnings call can be important because it can set expectations among investors about how well or poorly a company is doing. Management typically tries to be upbeat on calls even if there are negative aspects to report so that they don’t spook the market.However, some companies have been known to use language that sounds too optimistic or makes unrealistic promises about future performance which can end up hurting them later on if things don’t go as planned.
