Dig into earnings to gauge your area’s economic health
By Flickr user Susan Kane
Quarterly corporate financial reports are trickling out this week and the floodgates really open next week with bellwethers like Apple, Caterpillar and Amazon.com reporting on their most recent fiscal performance.
Reports from high profile companies tend to move markets. But companies on your turf needn’t be household names to provide helpful insight into your regional economy and signs of recovery.
Take a look at a Yahoo! or Bloomberg earnings calendar and update your tickler file with release dates for the companies on your beat. (If you’ve already missed a few, remember that most companies post podcasts of earnings calls on their Web sites.)
While not every company is on the same reporting timetable, and hence Dec. 31 wasn’t necessarily the 2009 close for all, this month’s spate of releases likely will be heavier than normal with 2010 prognostication, and similar response from industry analysts. So for you, it’s a good time to not only report the numbers, but to parse the management messages for hints of what to expect in the coming year.
Sometimes you can take a cluster of releases and tie them together for a trend or recovery story using the numbers to add theme and texture. If nothing else, earnings reports provide extra opportunities for in-person interviews with corporate execs.
You can ask them directly about their 2010 outlook for sales, share performance, hiring and employment, new technology or products – all metrics in which your audience has a vested interest. But, as I’ve said before, one way to help media-shy managers open up is to quiz them not about their own companies but about the industries and sectors they serve and patronize.
Ask a retailer about the commercial real estate market, and ask a trucking or logistics firm about how retail shipments are looking for the first quarter. Talk to airlines about fuel prices and oil companies about freight carriers. Chat with materials suppliers about new home construction. The executives may not want to be quoted but don’t let that deter you; these educational sessions can really enhance your understanding of industry pressures and arm you with focused, pithy questions for your next round of interviews.
Planning ahead. Here’s a look at major economic releases expected next week:
Jan. 25: National Association of Realtors existing home sales; check out my previous post “Housing stories are hard to resist” for tips and resources.
Jan. 26: Conference Board consumer confidence; FHFA home price index
Jan. 27: Census Bureau new home sales
Jan. 28: Census Bureau durable goods orders (December)
Jan. 29: Advance GDP; University of Michigan consumer sentiment
