Earnings calls contain news buried in corporate speak and financial jargon. Business journalists must quickly identify what matters, extract telling quotes, and write stories that explain significance to general audiences. The challenge is separating real news from routine updates while translating financial results into language readers understand.
How Do You Identify the Real News?
Earnings calls follow predictable formats: prepared remarks reviewing results, then Q&A with analysts. News hides in unexpected changes, forward guidance revisions, or candid Q&A responses. Strong business stories lead with what changed, not just restating expected results.
Look for significant deviations from expectations. One reporter covering a tech company noted: Revenue met analyst estimates, but the company lowered next quarter guidance by 15%, citing softening demand in China. That forward-looking statement was the story, not the in-line quarterly results. Markets dropped 8% on the news.
Identify strategic shifts or new initiatives. When a retail CEO mentioned testing subscription services in prepared remarks, one reporter recognized this as news: The company's first recurring revenue model represented a strategy shift after 60 years of pure retail. This deserved the lede over routine quarterly metrics.
Notice what executives refuse to answer or dodge. During Q&A, when an analyst asked about CEO succession planning and the CEO gave a vague non-answer, one reporter led with: Company declines to address CEO succession despite speculation following health concerns. The non-answer itself was newsworthy given the context.
- Deviations from analyst expectations or company guidance
- Forward-looking statements about next quarter or year
- Strategic changes or new business initiatives
- Unusual expenses, write-downs, or one-time items
- Executive commentary on industry trends or competition
- Questions executives dodge or answer evasively
What Structure Works for Earnings Stories?
Earnings stories need standard structure: lede with the news, add financial results for context, include forward guidance, then provide quote and analysis. This formula lets readers quickly grasp what happened and why it matters.
Lead with the most newsworthy element. One reporter opened: Tech Corp. slashed its growth forecast for next year, citing weakening demand in its core cloud business, sending shares down 12% in after-hours trading. This lede prioritized forward guidance over past results because that drove market reaction.
Follow immediately with key financial metrics. The same story continued: The company reported revenue of $42.5 billion for the quarter ended December, up 8% from a year earlier but below analyst expectations of $43.1 billion. Net income was $8.2 billion, or $1.05 per share, beating estimates. This context showed the full picture.
Add executive quotes that illuminate the news. One reporter selected: "We're seeing customers delay large cloud infrastructure projects as they evaluate the economic outlook," CEO Sarah Johnson said on the earnings call. "This cautiousness is reflected in our revised guidance." This quote explained the why behind numbers.
How Do You Translate Financial Jargon?
Earnings calls use technical language that general audiences do not understand. Strong business writing translates financial concepts without dumbing them down or being inaccurate. The goal is clarity for readers who are not finance experts.
Define metrics on first use. Instead of assuming readers know EBITDA, one writer explained: The company's EBITDA (earnings before interest, taxes, depreciation, and amortization, a measure of operating performance) increased 15%. This quick definition helped readers follow the story.
Put numbers in context that readers can grasp. Instead of: Revenue of $42.5 billion, one reporter wrote: Revenue of $42.5 billion, equivalent to about $115 million per day. Or: Net income of $8.2 billion would make it the 150th largest company by revenue if it were a standalone business. These comparisons made abstractions concrete.
Explain what financial changes mean for real people. When a company announced cost reductions, one reporter wrote: The $500 million in expense reductions will include eliminating 2,000 positions globally, about 5% of the workforce. Most cuts will come from corporate functions rather than customer-facing roles. This translation showed human impact beyond financial jargon.
What Quotes Add Value to Earnings Coverage?
Earnings call transcripts contain dozens of quotes. Select strategically for quotes that explain decisions, acknowledge problems, or reveal executive thinking. Avoid quotes that just restate numbers readers already saw.
Use quotes that provide reasoning or forward-looking context. One reporter included: "We're investing heavily in AI capabilities now because we believe this technology will define competitive advantage for the next decade," the CEO said. "Short-term margin pressure is acceptable given the strategic imperative." This quote explained trade-offs numbers alone could not convey.
Include quotes that acknowledge challenges honestly. When a CFO said: "We underestimated how quickly customer preferences would shift toward lower-priced alternatives. That miscalculation cost us market share this quarter," one reporter used this because corporate executives rarely admit mistakes so directly.
Skip quotes that just repeat financial results. One reporter deleted: "Revenue in the quarter was $42.5 billion, up 8% from last year." This added nothing. Instead, the reporter paraphrased results and saved quotes for executive commentary that provided insight.
What Should You Do Next?
Scan earnings call transcripts for real news: changes from expectations, forward guidance revisions, strategic shifts, or telling evasions. Structure stories with newsworthy lede, key financial metrics for context, executive quotes that explain, and analysis of significance.
Translate financial jargon into clear language, define technical terms, and put numbers in context readers can grasp. Select quotes strategically for insight rather than just restating results. When you combine news judgment with clear writing and strategic quote selection, you transform dense earnings calls into accessible business stories.
Tools like River's AI writing platform can help you extract key points from earnings transcripts, identify newsworthy changes, and structure business stories that translate financial information into clear, accessible journalism.