So, You Think You Know IR?

Test Your IR Quotient! Try your hand at the following ten questions. After completing the test, click on the Grade Test button. We'll score the results and provide the correct answers. Be sure to check back again to take a new IR Test, which we plan to update periodically.

1. After reporting quarterly results, your CFO realizes that the published earnings estimates for the quarter had been wrong. The erroneous consensus cited in all of the news wire stories significantly reduces the percentage by which you beat estimates. Eventually, after much wrangling and cajoling, the estimates publisher admits to a miscalculation of the consensus.
You should:

A
Do nothing. A publisher’s mistake has no impact on your company’s quarterly results.

B
Insist that the publisher correct the consensus and contact all of the news services to run story corrections accordingly.

C
Issue a news release stating the correct consensus and comparing it to the reported quarterly results. You need to be in control of this dicey situation.

D
Wait to assess the impact on your stock before making any decisions on a course of action.