Attracting interest form investors is something every IRO wants to achieve. For foreign companies entering the US market, this can be particularly challenging. Cultural differences aside, foreign exchanges have different listing requirements. When foreign companies want to attract investor interest in the US, they very often need to start working with reporting metrics they haven’t previously focused on.
Adjusting to EPS
Earnings Per Share (EPS) is just one of those metrics. US companies report on Earnings Per Share or Earnings Per Common Share as a key metric in quarterly financial reports. EPS has emerged as a way for companies to benchmark themselves within their industry and provide some context against peers and competitors. EPS is complicated, as Investopedia explains:
“EPS can be whatever the company wants it to be, depending on assumptions and accounting policies. Corporate spin doctors focus media attention on the number the company wants in the news, which may or may not be the EPS reported in documents filed with the Securities & Exchange Commission (SEC)”
In today’s video
Darrell Heaps and Tim Howard is discuss what foreign companies can do to attract investor interest in the United States. Clearly communicating management’s vision at earnings time is one critical area that isn’t covered below. This is a central focus for any foreign company trying to adjust to US reporting standards.
1. Create an earnings call podcast – There are a number of services on the market providing podcasting for listed companies which you can take advantage of. These get your message to an international audience
2. Follow SEO best practices for press releases – to ensure anyone who Google’s you finds the right content.
3. Consider marketing your earnings call with social media advertising. One of the most effective ways to target investors online.
4. Create an earnings infographic to visualize your most important industry metrics.