For many public companies, a quarter ended on March 31, 2025, and management has entered an investor quiet period until the financial results are reported. This creates a unique challenge: how to address investor concerns during a market downturn while adhering to quiet period restrictions. Below are key dos and don’ts to guide companies through this situation.
The dos:
- Respond quickly and transparently communicating your business value
Silence during uncertain times can lead to speculation and panic, but quiet periods limit what management can disclose. Acknowledge to investors and sell-side analysts that you cannot discuss the quarter or recent business events until the results are reported. However, take the opportunity to reinforce your company’s strengths – such as cost management, cash reserves, diversified operations, stable revenue streams, and long-term growth potential. Focus on how you’ve managed volatility and controlled key operational elements. - Accelerate and leverage your ‘time of conference call’ announcement
Maintain the same cadence of reporting but consider announcing the timing of your conference call earlier than usual. Use the press release as a proactive communication tool within the boundaries of Regulation Fair Disclosure (Reg FD). Reiterate how your company is managing controllable factors and reinforce its investment rationale. - Utilize digital platforms to reinforce strategy
Amplify public information through investor relations websites, social media channels, and email alerts. Highlight your company’s strong fundamentals, cost management efforts and resilience measures to reassure investors. - Proactively arrange post-reporting conversations
After announcing the timing of your earnings call, have your IR team reach out to sell-side analysts and active investors to offer the opportunity to speak with management following the release of results. This ensures stakeholders feel acknowledged and engaged. - Prepare thoroughly, especially to confidently manage Q&A
During your earnings call, address key concerns in your prepared remarks – investors want to hear how you are navigating economic headwinds. Clearly communicate cost-cutting measures without signaling distress. Prepare for tough questions about KPIs, revenue trends, customer activity, cost initiatives, liquidity, debt obligations and risk mitigation strategies. Be ready for investor skepticism. Conduct live Q&A rehearsal with third party advisors and leadership to refine responses. Share approved messaging with all external-facing employees to maintain consistency across communications.
The don’ts:
- Don’t violate Regulation Fair Disclosure (Reg FD )
Avoid sharing material non-public information with select individuals or entities without making it publicly available at the same time. Be cautious of seemingly innocent questions from familiar investors trying to gauge insider insights based on tone or demeanor. Stick strictly to approved messaging during interactions and ensure more than one company representative is present during verbal or in-person discussions. Remind employees not to inadvertently share sensitive information with friends or family. - Don’t downplay market concerns or make contradictory statements
Acknowledge investor anxieties rather than dismissing them. Demonstrate awareness of challenges and present a strategic plan to manage them. Misalignment in statements from executives can create confusion and signal internal instability. - Never engage in stock price speculation
During downturns, investors often ask questions like: ‘What happened to the stock price today?’ Avoid commenting on stock price fluctuations; instead, respond with: ‘It’s company policy not to comment on stock price movements.’ Refocus the conversation on business fundamentals. - Don’t overlook retail investors
Retail investors are critical for stock stability but are often overlooked in favor of institutional investors. Ensure they have equal access to information by using public channels like press releases, social media updates and earnings calls. - Avoid overpromising or making recovery predictions
While optimism is important, making bold assurances can damage credibility if conditions worsen. Although there will be pressure to reassure investors, making bold recovery predictions without clear evidence can backfire if not achieved.
Conclusion
A market selloff is a test of a company’s investor relations strategy and communication discipline – especially when management is in an investor quiet period. By working with your IR firm you can prepare consistent messaging for all spokespeople and, while adhering to Reg FD guidelines, companies can maintain transparency, preserve credibility and position themselves for long-term stability – even in volatile times.
Kirsten Chapman is managing director at Alliance Advisors IR
