Jason Zweig's recent The Wall Street Journal article, "Picking a Stock for the Year 2048," explores a unique experiment where college students assemble a portfolio of stocks they can't touch for 25 years. The challenge raises questions about sustainability, investor expectations, and the importance of strong fundamentals and innovation for long-term success.

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.

Earnings calls transcripts can provide key insights about forward earnings and revenue guidance that isn’t present in company filings. Listening for key details help investors put the business in context—for better or worse.