MEMORANDUM

TO: Block 3 and Block 4, ICE Team 2 COMM 3040 Students

FROM: Prof. Marcia Pentz

DATE: February 9, 2021

SUBJECT: Submit an investor/earnings call analysis memo Mon., Feb. 15, 7:00pm—1000-word limit

For the first written COMM 3040 assignment, you’ll listen to an archived investor call posted on the
IR website for your selected firm or one of its competitors. You will then write a memo addressed to
Prof. Pentz, in which you briefly summarize the call’s main message points, provide your opinion about
the effectiveness of the executives’ message and delivery, and analyze the executives’—and analysts’—
communication style and effectiveness on the call. If the call involves video as well as audio/transcripts,
make sure to comment on how well the executives used the visual medium. As we’ve already discussed
in ICE, the ability to summarize, condense, “read between the lines,” read body language, and analyze
the effectiveness of a management team’s communication is a skill that can serve you very well in future
endeavors. The rest of this memo describes the assignment, provides some information about investor
calls, and explains how the assignment will be evaluated.

Find a call on your company’s IR website, or a competitor’s, listen to and analyze it

To assist in your project information gathering, we ask you to find an investor call at your selected firm
—or one of its competitors—and listen to the entirety of the call, including the Q&A portion at the end,
where, as you know, much about the company is revealed. In your memo, first summarize—briefly—
the key message points the management team conveyed through the call. Next, analyze and provide
your detailed opinion about how key executives delivered the message and how you assessed the
effectiveness of their communication throughout the call. Then, analyze both the overall analyst
communication techniques on the call, and explain any significant shifts in executive style in response to
analyst questions. Were there any moments that stood out to you? Why? What impact might those
moments have if you were an analyst about to issue buy, hold, or sell recommendations?

Limit your memo to 1000 words, devoting approximately 25% of your memo to your concise, summary
of key take-aways from the call. Devote the rest of your memo to your analysis of the call. In writing
the memo, follow our ICE memo guideline specifications from the fall.
ICE Blocks 3 & 4
Investor/Earnings Call Memo Assignment
Feb. 9, 2021
Page 2

Note the different types of investor calls and varying communication objectives

Most investor calls are earnings calls, in which the management team discusses quarterly or annual
financial performance. However, some investor calls focus on specific events or issues such as a
significant shift in strategy like those you are focused on for the 3040 SVC project. You may choose to

listen to either type of call. Just make sure the call you choose adds value to your SVC project research.
In addition to conveying performance data, these calls provide a vital channel through which companies
connect with the investor and analyst communities, showcase successes, and possibly alleviate—or at
least address—any uneasiness interested parties may have about the company’s reputation or
performance. How executives represent their company on a call—i.e. the Elon Musk & “stupid
questions” mini-drama of 2018—can have profound effects on stock price and investor confidence.

To help you listen effectively and perform well on this memo assignment, please read these short
articles. We’ve also provided a link to a “United Technologies Analyst and Investor call” in which the
firm discusses its major restructuring plans. The reason for UT’s presentation/call is similar to your
SVC slide deck, project presentation, and press release.

 “How to listen for the hidden data in earnings calls,” Alina Dizik, Chicago Booth Review, May
25, 2017. http://review.chicagobooth.edu/finance/2017/article/how-listen-hidden-data-earnings-calls
 “Detecting Lies on Earnings Calls,” Jan Alexander, strategy+business, Dec. 12, 2017.
https://www.strategy-business.com/blog/Detecting-Lies-on-Earnings-Calls?gko=a119d
 “How to Listen to Earnings Conferences Calls; A step-by-step lesson on how to listen to an
earnings call,” Scott Rothbort, TheStreet, 5/1/2007.
https://www.thestreet.com/story/10353956/1/the-finance-professor-beginners-guide-to-earnings-
calls.html
 If you have never listened to an investor/earnings/analyst call, here are some examples you might
find interesting.
o Dec. 8, 2020 GameStop Q3 Earnings call https://news.gamestop.com/events-and-presentations
o January 27, 2021 “Boeing Fourth-Quarter 2020 PERFORMANCE REVIEW; David Calhoun,
President and CEO; Greg Smith EVP Enterprise Operations, CFO”
o https://investors.boeing.com/investors/events-and-presentations/event-details/2021/Q4-2020-The-
Boeing-Company-Earnings-Conference-Call/default.aspx
o Nov. 27, 2018 “United Technologies Analyst and Investor Call: Announcing Intention to
Separate Into Three Independent Companies and Completion of Rockwell Collins Acquisition”
Audio Replay & Presentation slides available https://ir.utc.com/events-and-presentations/?
_ga=2.217893718.1520100256.1547751279-985803884.1547751279

You may find the sources listed above helpful both as a listener and as someone who will organize,
write, and deliver such calls in the future.

Your memo will be evaluated on effective content, direct-style written acuity, & format
ICE Blocks 3 & 4
Investor/Earnings Call Memo Assignment
Feb 9, 2021
Page 3
Submit your assignment via email by Monday Feb. 15, by 7:00pm. In the introductory paragraph, your
memo must provide a link to the call you analyzed and the typical elements of a memo introduction.

Your memo will be evaluated on the degree to which it:

 Concisely summarizes the main “take-aways” from the call. For example, does the memo
share the most important messages, both those conveyed during the opening presentation and
those provided during the Q&A session? Does the author explain the selection of key points?

 Thoughtfully analyzes the call. Did the speakers build trust through their delivery? Did they
sound authoritative and confident? Did they truly answer questions or did they sound evasive?
Include your thoughts about anything significant you discerned “between the lines.” Were there
any moments where the placement of information suggested an unspoken goal? Were the
speakers believable? How did their delivery build or undermine trust?

 Comprehensively follows the assignment parameters and uses the ICE memo guidelines to
format the memo. The memo should flow smoothly and demonstrate facility with direct-style
writing.

 Wisely uses the rubric provided for guidance in Appendix A as a way to edit the memo rather
than as an organizing device for developing the Investor/Earnings call memo argument structure.

You may want to listen to a few calls to get a sense of how they’re conducted; but, ideally, you’ll listen
to a call by a company your group selected for the project—or one of its competitors. You’ll want to
read the call’s transcript and any accompanying press release or slide deck provided on the IR website
in connection with the call.

While you should not simply answer the questions below, the questions may help you think about how
to analyze the call as you listen:

1. Does the overall objective of the call appear to be to showcase the company’s successes or to
alleviate the concerns of investors and analysts? What leads you to your conclusions? Why?
2. What informational and persuasive messages are most effective in the call? Were any examples
particularly helpful? Why?
3. How concerned do those people organizing and speaking on the call seem to be with managing
the company’s identity, image, and reputation? When and why?
4. Does management appear to be directing messages toward any specific stakeholders in addition
to shareholders, potential investors, and analysts? If so, whom, and why?

The goal of the assignment is twofold: to have you listen to key corporate communication tool—the
investor/earnings call; and, to once again practice giving your reasoned assessment and opinion about
corporate messaging. There is no “right” answer here; there are strong, reasoned arguments backed by
specific examples and sophisticated analysis.
ICE Blocks 3 & 4
Investor/Earnings Call Memo Assignment
Feb. 9, 2021
Page 4
I look forward to reading your investor call memos. I can be reached by email at mlp6h@virginia.edu if
you have questions. Remember to include your readability statistics and to pledge your memo before
submitting it.

Appendix A: Grading rubric used to evaluate the Investor/Earnings call memo

COMM 3040 Investor/Earnings Call Evaluative rubric Still Above

Satis. Superior
TEAM 2 working Average
Structure
Client-ready, correct, professional on-page design
Direct, specific, memo Subject line with SAS NO YES
Introduction includes all these elements
Occasion NO YES
BLUF Statement—overall main point NO YES
Blueprint—outline of key points/arguments you’ll make
NO YES
in the memo
Roadmap—short announcement of what topics the NO YES
memo covers in which order
NO YES
Intro includes company name, type of call, and link to call
Immediately provides WHY the analysis matters NO YES
SAS heading are specific and make assertions
Pulls out key message points from the call an interested
audience would want or need to know and provides
those key points in a coherent structure
Avoids simple summary of data or restatement of
topics; develops well-crafted analysis/supported opinion
Provides specific, compelling analysis of the
management team’s effectiveness—delivery, tone,
presence, believability, organization, etc. on the call
References specific moments from the Q&A to support
key assertions about message points and delivery
Comments on the how the executives on the call
address corporate reputation—or not
Comments on the how the executives on the call direct
messages to multiple audiences
Last para. builds rapport, is forward looking & gives
NO YES
contact info.
Degree of originality of conclusions &/or analysis Expected Interesting New & Diff. Nice Insight!
Grammar w/in usage parameters: does not use “this,”
NO YES
vague referents, “to be,” or vague language
Readability statistics included & within required norms NO YES