FactSet Insight: Increasing Transparency with Earnings Date Revisions During Covid-19
Tue June 2, 2020
View full article on FactSet Insight
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."
To shed light 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.