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Apart from proforma earnings statements, other information that can be prominently displayed in a company's news release to impact stock prices include: future growth projections, new product or service announcements, changes in leadership or strategic direction, acquisitions or partnerships, and financial performance indicators such as revenue, net income, and earnings per share.
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How to effectively show the investment and reward opportunities of a new venture or project? Use our "Ultimate Startup Pro Forma" model to showcase a...
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In his article for Harvard Business Review, Baruch Lev – the Philip Bardes Professor of Accounting and Finance at the Stern School of Business in NYU, talks about proforma as one of the ways in which managers can impart useful information to investors. (For more like this, check out our book summary). Lev stresses that "research shows that proforma earnings statements prominently displayed in the headline or first paragraph of a company's news release have a much stronger impact on stock prices than proforma earnings reported elsewhere in the document."
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