Corporate conference calls used to be limited to analysts and big-shot fund managers. You can glean good information from conference calls, but you'll also hear self-serving statements and corporate jargon. The analysts' mood. If analysts are unhappy with the results, the company's stock price could suffer, says Pat Dorsey, director of stock analysis at Morningstar. Management's plan to deal with earnings disappointments.
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.