As the leading full-service IR firm that specializes in working with Industrials companies, we have been working diligently with our clients this earnings season to develop clear and concise IR communications around the impact of inflationary pressures and tariffs. In an effort to gain some timely perspective, we have conducted a sophisticated survey of several hundred buy-side and sell-side participants that invest across the Industrial spectrum. The complete results of this survey will be released in late August, but we wanted to share some important feedback that we have received thus far.
The initial results we’ve received imply that near-term communications could have a significant impact on portfolio decisions for asset managers, making this earnings season a fairly critical one for the sector. Investors will be seeking an elevated discussion surrounding recent inflationary pressures, including raw materials, tariff impacts, and pricing and contract structures related to these issues. We have been encouraging our partnership clients to expand their communication surrounding these issues over the last two quarters, as it is clear the Street is concerned and needs more information from companies to be confident in their investments. Many investors believe they are at an inflection point where critical portfolio allocation decisions must be made, deciding where to pare back certain positions given perceived risks in this environment, especially if significant gains have been achieved.
Click the following link to view the “Industrial Sector Inflationary Pressures & Tariffs Earnings Pre-Read.”
We expect that the buy- and sell-side have, and will continue to maintain, high expectations related to messaging around strategy shifts, contract and cost expectations, supply chain disruptions, tax policies, among other important topics. Industrials companies will need to be very clear and succinct about these topics in their ongoing communications. We have been working closely with our clients on this issue, and if you would like to speak to our Industrials team about your approach, we are happy and able to set up a strategy call.
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