Thursday marks the beginning of the earnings season in full swing. Market giants like Investor, Sandvik, Swedbank, Essity, and EQT all reveal their colors on Thursday.
On Friday, the flood of reports continues with new numbers from companies like Ericsson.
Placeras and Affärsvärlden’s responsible party do not just skim through the quarterly figures but “focus more on understanding the company’s direction over a longer period of time.”
“Gross margin and growth over a couple of years are interesting. And comparing what the CEO says now to before. Analysts’ questions on conference calls are also of interest,” he says.
How much do backward-looking reports matter to you when you invest?
“In a way, very little because you are trying to assess the future. But the future is often a function of the starting point and direction, and there, quarterly reports are the single best source.”
Which Q4 reports are you particularly eager to read?
“Above all, I am eager to go through many interim reports. I believe in quantity and a bit of randomness. The companies I already own, I often don’t even read every quarter unless it seems like a lot is happening.”
How can companies improve their quarterly reports?
“More well-thought-out CEO statements with substance would be nice. Skip the clichés and write honestly about what one thinks and feels. It should be the same tone as one has in a board meeting. The same goes for conference calls. Skip the meaningless reading from the reports. Instead, comment briefly and open up for questions.”