Analysts, once known for generously extending compliments during earnings calls, are now adopting a more restrained approach according to a Bloomberg news article this week. Positive accolades like “Great quarter,” “Way to go” or “Congratulations” are down 29% this year, making it the biggest annual decline since the Great Recession.

Earnings calls, no matter what you think of them, offer you a platform to shape your story. The key to a successful earnings call is meticulous research, thorough preparation, and a precisely crafted script. Within the initial three minutes, it's imperative for the CEO to briskly navigate through the key quarterly achievements, categorized by theme, while also shedding light on the progress of long-term strategies and goals.

For small caps, the presentation part of the call should be no more than 15 minutes with 15 minutes for Q&A. Hit key numbers, highlight milestones and clearly explain anything that might be ambiguous. Then open up the lines for questions. After all questions have been answered, take a cue from the large caps and before you thank them, share your sentiment about the upcoming year.

Small cap companies are gearing up for their earnings calls, and a well-crafted narrative is crucial to cover key points of the quarter and maintain credibility. To effectively manage expectations, companies should focus on what they can control, structure a well-thought-out story, and engage in timely disclosure.

As with everything, planning well in advance can alleviate most of the anxiety associated with periodic reporting requirements. First, identify the date to report earnings and work backwards with your IR advisor to coordinate timelines, logistics, results and remarks. Internally create a protocol list of who is responsible for specific deliverables and check in periodically to ensure everyone is on task.