30 Aug WHAT WE CAN LEARN FROM EARNINGS SEASON; THE LATEST IN C-SUITE
WHAT WE CAN LEARN FROM EARNINGS SEASON
With earnings season drawing to a close, here are The Australian’s three takeways:
Management caution: An uncertain rate environment and economic outlook means that management commentary on company outlooks was cautious this season. In response, analysts have downgraded their Earnings Per Share or EPS forecasts for FY25 by 5 per cent, making local equities comparatively more expensive than other asset classes.
Changing rate expectations: Companies had expected the RBA to lower rates this year. But with the RBA signaling that rates are likely to remain elevated for the foreseeable future, we can expect cost of living pressures to have a negative impact on the retail, property and construction sectors.
Margin compression: With revenues broadly in line with expectations, while earnings disappoint, it’s clear that margin compression is well underway among Australia’s listed companies. Which, in turn, means that companies will have to cut back on labour costs to try and improve their margins. Whether they do it via reduced hours or reduced headcount remains to be seen. Either way, we could soon see a rise in the unemployment rate.
THE LATEST IN C-SUITE
In a bid to shake up how companies connect with their stakeholders, post-earnings C-suite videos are proving to be the latest major trend in corporate communications. CEOs are stepping into the spotlight and in front of the camera to enhance engagement and make leaders more relatable.
The trend has been adopted by top executives from companies like Shopify and Blackstone, who use this format to simplify earnings announcements and connect with users on social media. According to LinkedIn, posts from chief executives with at least 5,000 employees rose by 23 per cent in 2023 and engagement is higher for videos like these compared to traditional updates.
Clearly, this trend is working. And as the video-first way of consuming content continues, it’s an approach corporate leaders should adopt to tell their story in a creative and exciting way.
OUT OF OFFICE, OUT OF MIND
Out-of-office messages have transitioned from polite placeholders into bold statements like, “I’m living my best life on holidays, and your email isn’t invited!”, and there is a reason these are becoming so popular.
Recent research from Statista reveals the number of emails sent and received since 2017 has increased by 34 per cent globally. And that’s just emails.
Whether you’re relaxing by a hotel pool, navigating parenthood, or just taking a well-deserved break, these automated emails allow us to truly disconnect. Bing Chen, former YouTube executive, sums it up perfectly with his OOO message: “If this is urgent, take a deep breath because few things really are”, urging us to focus on what truly matters.
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