Do you ever wonder how top-traded and top branded companies write an effective earnings press release?
We will show you how companies like – Amazon, Google, Microsoft, McDonald’s, Ford, Meta, TD Bank, Shopify etc. write effective investor relations press releases.
You may be new to writing earnings press releases or a seasoned professional. Whatever your level of experience, you can employ some of the earnings press release guidelines that top companies use.
What is an Earnings Press Release?
An earnings press release provides a high level snapshot of a company’s earnings. It offers investors a first glimpse into company financial statements, operations, sentiment, growth, outlook and key information. The earnings release is intended to be an honest representation of a company’s performance. Typically, public relations professionals or investor relations professionals write these press releases. |
We have compiled various earnings press release examples of top companies in 2023. Let these examples guide you in how to write an earnings press release for your company.
Then, after writing your earnings release, find a top press release distribution service to send out your release.
Afterwards, you can use social media techniques to share your earnings message.
How to Write an Effective Earnings Press Release
Regulators do not directly specify what a company must state in an investor relations press release. However, there are several key parts that press releases usually contain:
Attention Grabbing Headline
Sub-Headlines of Major Highlights
Summary of Key Financial Results
Company Description (mission statement)
Quote from Management
Description of Major Business Events
Corporate Earnings Guidance (outlook)
Forward-Looking Statements Disclaimer (cautionary statements/legal advisory)
Boilerplate for an Earnings Press Release
Webcast and Conference Call Information
Financial Statements in an Earnings Press Release
Earnings Press Release Contacts
Attention Grabbing Headline
Most companies we looked at use generic or basic earnings release headlines. In contrast, if you use an attention grabbing headline, you will pique the interest of many people.
Also, always ensure that your company name is incorporated into the headline.
Microsoft does a good job creating a descriptive and informative headline below.
For example, instead of using a generic title such as, “Microsoft Announces Second Quarter 2022 Results,” the company explicitly states the driving force behind the results directly in the headline.
Undoubtedly, it is interesting to know that the strength of Microsoft Cloud is driving the second quarter results.
Ford uses a long and descriptive headline for its 2022 fourth quarter and year end results.
Specifically, the company directly addresses its volume shortfall in the headline. But, Ford also highlights how its people, plan and products will produce positive results for the company in the future.
In this example, Ford uses its earnings release to be up front with consumers and share both positive and negative corporate news in the headline.
Bombardier communicates positive financial results in the headline of its fourth quarter and 2022 full-year financial results.
Sub-headlines of Major Highlights
Sometimes, you might decide that you would like to add informative sub-headlines below your headline.
This approach draws direct attention to key earnings release information right at the top where it gets noticed.
Proctor & Gamble uses this method in their 2023 second-quarter results.
For instance, P&G uses four sub-headlines directly below the headline. These sub-headlines showcase key financial data along with growth projections.
McDonald’s uses a slightly different approach.
To illustrate, the company makes use of a tactic to use bullet points to describe key insights in the position of where sub-headlines are placed.
Summary of Key Financial Results
Many investors are keen to get quick financial snapshots of company earnings’ results. Also, some popular financials that investors seek out are revenue, earnings per share (EPS) and net income.
In addition, investors like to see the growth of a company. As a result, typically financial results look at growth by comparing current results to the previous quarter and previous year.
Oftentimes, companies will showcase these key financial results in table or bullet form near the top of the earnings release. This ensures readers can view the results quickly.
Google displays its Q4 2022 financial highlights in an easy-to-read table form near the top of the earnings release.
It is interesting to note, this table resembles the financial tables that you commonly see in annual and quarterly reports.
The image below depicts the financial highlights table Meta uses for its 2022 fourth quarter financial highlights.
Meta places the following table, along with the 2022 full year financial highlights table, at the top of its earnings release.
Interestingly, the font type of Meta’s financial table is very pleasing to the eye and easy to read.
The Bank of Montreal uses bullets to list its financial highlights rather than a table.
Since these financial highlights are highlighted in blue at the very top of the earnings release, you are made aware of their importance.
TD Bank also lists its 2023 first quarter financial highlights in bullet form at the very top of the release. Indeed, the only item listed above is a disclaimer about this earnings release.
Thomson Reuters lists its financial highlights in bullet form at the top of the release. In addition, the bullets are offset with sub-bullets.
Company Description (mission statement)
The company description or mission statement of some large companies may seem obvious to some.
However, it is still preferable to add in a brief company description in the first line of your earnings release.
Interestingly, most companies we looked at in this study did not add a brief company description to the first line of the earnings release.
Shopify adds its company description in the first line of its 2022 fourth quarter and year end earnings release as the following:
A provider of essential internet infrastructure for commerce
Quote from Management
Most earnings releases feature a quote from management.
Corporate management intends this quote to summarize company earnings and operations.
Furthermore, you can use quotes to add a personal touch to an earnings release.
Apple’s CEO, Tim Cook, touches on a challenging environment and a major company milestone in the following earnings quote.
Description of Major Business Events
It is important to include operational highlights in your earnings release.
In the example below, Meta combines operational highlights with financial highlights. Daily and monthly active people and users are key operational metrics the company tracks.
Corporate Earnings Guidance (outlook)
Corporate guidance relates to expected future goals and results. In other words, this is a prediction, projection or forecast of what is to come. These are also known as future-looking statements.
Generally, corporate guidance gives analysts and investors an idea of the projected future environment a company is facing. The future can be challenging, status quo or exceed expectations.
An earnings guidance is the information provided by the management of a publicly traded company regarding its expected future results, including estimates of revenues, expenses, margins, and earnings. In addition, the company’s management sets up its future direction by defining its short-term and long-term goals.
Corporate Finance Institute
Amazon forecasts unfavorable foreign exchange rates in the example below.
Crescent Point communicates that it is realizing an average production rate that the company previously forecast from its previous guidance. That is, the company is meeting its guidance forecast from the previous financial reporting period.
In addition, the company forecasts an overall optimistic outlook in the current guidance.
Forward-Looking Statements Disclaimer (cautionary statements/legal advisory)
A forward-looking statements disclaimer is often found in earnings releases.
Specifically, these statements serve as a warning that forward-looking statements cannot be relied upon with accuracy.
CAUTION REGARDING FORWARD-LOOKING INFORMATION |
In essence, you should use a forward-looking statement disclaimer anytime a press release contains corporate forecasts or future projections.
The disclaimer is used as a legal safeguard.
You can consult with your corporation’s legal counsel to create your company’s individualized forward-looking statements disclaimer.
Amazon’s forward-looking statements disclaimer for its 2022 fourth quarter results press release is shown below.
Boilerplate for an Earnings Press Release
Boilerplates are short, “about us” paragraphs that give a high-level overview of a company. You can find boilerplates at the bottom of press releases.
Amazon’s boilerplate starts with defining its four major principles. Then, the company refers to its sustainability practices. Lastly, Amazon describes its major innovations and lines of business.
Webcast & Conference Call Information
Include your company’s teleconference and webcast information to discuss annual or quarterly earnings results.
Then, analysts, investors and interested stakeholders will have easy access to listen to the results.
TC Energy displays the following teleconference and webcast information on its 2022 fourth quarter earnings press release.
Financial Statements in an Earnings Press Release
Most companies attach financial statement tables to the bottom of earnings press releases. Many consider financial statements to be the most objective part of an earnings release.
However, these financial statement tables should be read in conjunction with the actual financial statements to verify information is correct.
Typically, companies place the following financial statement tables in earnings releases:
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Balance Sheets
Statements of Financial Position
Statements of Changes in Equity
Consolidated Statements of Cash Flows
Earnings Press Release Contacts
Ensure you list the appropriate contacts at the bottom of your earnings release.
Oftentimes, the contact will be an investor relations department or person, or someone from the management team.
It is best to list both a phone number and email for each contact.
Other
Many of the companies in this study include Non-GAAP financial measures in the earnings press release.
We hope you find this earnings press release information valuable in constructing, editing or improving your next earnings release. Although there is no one set way to write an earnings release, follow the practices here to get the best results.
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