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Dave and Liz recently shared helpful tariff-related disclosure considerations for upcoming 10-Qs. This H/Advisors Abernathy article has tips for navigating earnings and investor calls in these periods of unprecedented uncertainty. Generally, it stresses that management teams need to be nimble, provide detailed and precise information where they are able to and also be comfortable saying “we don’t know” when asked questions they shouldn’t be expected to have answers to. Here are some tips from the alert:

Ditch the “closely monitoring” and “wait and see” messages. Leadership must be able to answer detailed, pointed questions from investors and analysts. This is especially important if a company has substantial exposure and/or a complex global supply chain. Tackle the issue head on. Don’t wait for the question.

Ensure internal alignment and message consistency. Board directors should use the same talking points as the CEO and CFO, and the same goes for investor relations and government affairs. All must be consistent to avoid confusion with financial audiences and uncertainty with other stakeholders.

Deliver earnings and investor calls live – or be prepared to ditch any pre-recorded versions. Daily, if not hourly, news and market jolts mean messages may have to quickly change to be credible with audiences. Addressing pressing issues immediately instills confidence in management.

Tailor financial guidance to a specific situation. Adjust and augment disclosures if needed. Even if near-term expectations have not changed, longer-term outlooks may be nearly impossible to peg accurately. It’s acceptable to adjust guidance disclosures to reflect current circumstances. Outline underlying assumptions and key swing factors. Silence can be perceived as re-affirming.

Talk about operational changes being considered or implemented – to a point. Focus on options rather than disclosing specific long-term plans, given that tariffs could be diluted or reversed if Trump strikes deals. It’s also OK to acknowledge what level of tariff in a certain country the business can sustain – and what it can’t.

On the compliance front, this CFA Institute post reminds us that companies are unlikely to adjust out the impact of tariffs in their non-GAAP numbers. It notes that tariffs are generally “normal, recurring, cash operating expenses necessary to operate a business, especially if that business already has an established history of paying tariffs.”

I would add that companies should be especially mindful of the Reg. FD risks posed by private meetings in these periods of uncertainty. Private reaffirmation of earnings guidance even shortly after a public earnings announcement may not be appropriate with the current pace of change. Be wary of investor “one-on-ones” having a different tone than recent public statements or providing “additional color.” Companies might be finding themselves following a “no comment” policy more often than usual or making more frequent public disclosures to accommodate private meetings.

– Meredith Ervine