Q1'24 Inside The Buy-Side® Earnings Primer®

Corbin Advisors logo
8 min. read

Corbin Advisors’ Thought Leadership on Navigating COVID-19 Featured in CommPRO.biz Article

Rebecca Corbin, Founder and CEO of Corbin Advisors - portrait

Rebecca Corbin

Founder & CEO
Rebecca Corbin, Founder and CEO of Corbin Advisors - portrait

Rebecca Corbin​

Founder & CEO​

Entrepreneur, visionary, strategist, thought leader and author​

Expertise

  • Capital Markets and Investor Relations (Pre-IPO and Public Companies)
  • Institutional investor / Buy-Side Landscape
  • Shareholder Value Creation Strategies
  • Capital Allocation
  • ESG
  • Strategic Transformations, M&A, Crisis Situations, Activism
  • Complex Companies, Out-of-Favor Stocks

Rebecca is founder and leader of Corbin and a pioneer in investor relations globally. Over her 20-year career in capital markets, she has architected a proprietary and proven methodology to drive sustained value creation based on extensive and unparalleled Voice of Investor® research and insights-driven strategies that have consistently been validated by the global equity markets.

As a subject matter expert and renowned capital markets and investor relations strategist with a demonstrated track record of rerating companies, Rebecca is a trusted advisor and partner to boards and executives who continually seek her research-based insights and counsel. She serves a broad range of global clients across sectors and industries.

Rebecca was in her mid-twenties when she founded Corbin Advisors in 2007 and, under her leadership as CEO, the company has developed a reputation as a best-in-class partner and, as a result, has grown exponentially and continues to set records across key metrics annually. She serves as Editor-in-chief of Inside The Buy-Side®, a leading research publication covered worldwide that identifies and reports on investor sentiment trends globally and best practice. Rebecca is a highly sought after and prolific public speaker, including at the World Economic Forum in Davos, and is a recurring guest on CNBC’s Squawk on the Street.

Long committed to giving back, Rebecca dedicates significant time and resources to helping advance social services, the arts, humanities, and education. In 2020, she created Corbin for Nonprofits and committed to donating 20% of that practices’ annual operating profits to nonprofit organizations. Rebecca serves on the boards of Washington College and The Bushnell Center for the Performing Arts and is a past director of the Hartford Symphony Orchestra and CT Women’s Hall of Fame. She is President of the Jim and Rebecca Loree Foundation, a nonprofit, charitable organization she co-founded with her husband in 2009, which is focused on supporting secondary and higher education.

Rebecca has been a frequent honoree for business and community leadership and most recently received Hartford Business Journal’s Annual Women in Business Award, which recognizes outstanding Connecticut-based female CEOs, entrepreneurs and senior-level executives who have mastered their industry and are admired by the business community. She holds a B.A. in Business Management from Washington College, the first college chartered in the sovereign United States of America, where she graduated cum laude and with Honors.

Rebecca resides in the Nutmeg State with her husband and their four daughters. She loves to spend time with her family, garden, play tennis and run.

Navigating COVID-19 from the Investor Relations Perspective

By: Rebecca Corbin, Founder and CEO of Corbin Advisors

Coronavirus, or COVID-19, is having an unprecedented impact on global trade, supply chains and financial markets in comparison to previous pandemics. Since January, when the coronavirus was first reported, there has been a significant shift in executive outlooks – from one of uncertainty around the potential financial impact in the early part of the earnings cycle, to companies providing a revenue impact to the first quarter or first half of 2020 to factor in known and unknown affects. Now some companies, such as Apple, are pre-announcing they will be unable to meet guidance previously disclosed just weeks prior.

By the end of February, more than 600 companies globally were mentioning the coronavirus on earnings calls. As investors listened to executives outlining the potential impact, which grew increasingly more serious, and media reports continued to stoke fears – reporting on the alarming and accelerating rate of cases and fatalities globally – the Dow and S&P 500 experienced their largest weekly percentage losses since the Financial Crisis. On March 9, following an oil price war between Saudi Arabia and Russia, the ensuing sell-off was so significant that it triggered a circuit breaker and resulted in the Dow seeing its worst day since 2008.

The outbreak of COVID-19 and ensuing events are directly impacting supply chains and global demand for products and services across a wide spectrum of companies. However, it is unclear at this point what the additional indirect effects may be on the global and domestic economy as the year unfolds.

In situations like these, where near-term unpredictability and uncertainly are prevalent, organizations must remain fluid in their communication with stakeholders – employees, customers, partners and shareholders – and strive to be appropriately transparent.

Preparedness is critical and selected strategies include:

  • Conduct internal assessment and scenario analyses: For IR professionals, being present in ongoing internal business discussions and keeping a pulse on the external environment – to assess not only direct but secondary and tertiary risks related to supply chain, inventory, labor and logistics – is critical to developing an accurate and specific narrative for your company. Conducting scenario analyses measuring stress on earnings, cash flow, liquidity and capital structure is best practice.
  • Communicate just the facts “at this point in time”: Balancing the near-term impulse to over communicate with investors with providing an appropriate level of insight is critical to building credibility. Given uncertainty around the financial impact, it’s important to avoid communicating outside of what the company has publicly stated from a guidance perspective. That said, communicating your organization’s business continuity plan and actions to mitigate financial and operational headwinds, as well as a relevant historical perspective demonstrating when your company faced a previous global headwind and emerged on the other side, is best practice. The earnings period, including pre-announcements as appropriate, remains the best channel to communicate updates to financial performance and most effectively control the narrative.
  • Strategize on earnings cycle communication: Whether your company is directly affected by COVID-19 and ensuing events or not, all companies should educate the Street on the impact or lack thereof. For those companies who seemingly are not directly affected, do not assume that all investors understand this. Also, recognize that the indirect macro effects of the crisis cannot be known at this time and can only be viewed in the context of scenarios. Continuing, in times like these, guidance policies must be fluid. For companies that provide only annual or no guidance, consideration must be given to communicating quarterly guidance in order to frame out the impact and help investors navigate the short-term. Underscoring that this is not a new policy but an effort to remain transparent during these unprecedented times is best practice. Companies that are thoughtful and proactive in this regard can build management credibility with their investor and analyst ecosystem, which is a factor in a company’s valuation over the long-term. Further, companies should consider monitoring industry and peer calls to frame questions that executives could be asked during the Q&A portion of the earnings call.

Underpinning each of these elements is a focus on providing insight-driven and credible information that supports investor understanding of a company’s decision-making process during these uncertain times.

It is unclear when the situation will truly be over, but the only thing we can be certain of now is that it’s not over yet. Today, with ~110,000 COVID-19 cases reported worldwide, and over 90 countries affected and climbing, it is more critical than ever for companies to effectively and responsibly communicate with shareholders.

By demonstrating a grasp of the situation, in terms of controlling the controllable during times of fear and turbulence, companies can emphasize their enduring long-term value to investors now more than ever.

About Corbin Advisors

Since 2007, Corbin Advisors has tracked investor sentiment on a quarterly basis. Access Inside The Buy-Side® and other research on real-time investor sentiment, IR best practices and case studies at corbinadvisors.com.

Corbin is a strategic consultancy accelerating value realization globally. We engage deeply with our clients to assess, architect, activate, and accelerate value realization, delivering research-based insights and execution excellence through a cultivated and caring team of experts with deep sector and situational experience, a best practice approach, and an outperformance mindset.

Inside The Buy-Side®, our industry-leading research publication, is covered by news affiliates globally and regularly featured on CNBC.

Media Inquiries

Members of the press, please contact our Marketing Team via email. 

Partner with Us

Leverage the experience and expertise of our team.

A strategic consultancy accelerating value realization globally

Subscribe to Inside The Buy-Side®

Access insights in our regularly published research, which captures trends in institutional investor sentiment globally.

Name(Required)
© 2024 Corbin Advisors. All Rights Reserved.
© 2024 Corbin Advisors. 
All Rights Reserved.
Scroll to Top