Most companies experience bad quarters from time to time. That doesn't necessarily mean the company is a bad investment. Listen carefully to determine whether management has a good explanation for the shortfall or a plan to address it. Management's ability to answer questions. A plan to attract and keep good employees.
Analysts often ask management about employee turnover and recruitment programs.
If a company says it's turning qualified job applicants away because all its jobs are filled, that's a good sign. Analysts may also ask about the productivity of a company's sales force, often the key to a profitable business. A plan to deal with competition. Analysts often ask about the company's share of its particular market and what it plans to do to increase it. Companies also should have plans to deal with international threats.