In today’s climate of economic worries, investors get spooked at the slightest event or comment. During this earnings season what can companies do to ensure that their message is the right one and avoid volatility in their stock price? Here are a few tips to keep in mind, which include what to say (or not) in the press release and earnings call, how to mitigate the “tone” of the message and finally, what to avoid.

It’s safe to say that the small to mid size biotechnology industry is alive and, while stressed, it is likely that the market view will recover a positive tone, particularly with pharmaceuticals. This is true if for no other reason than big pharmaceutical companies look to the companies in this market segment for replenishing their product pipelines.

For each company listed on the stock exchanges around the world, there is a large audience of investors who has a set of expectations related to the company’s current and future performance. If these expectations are not met, the company’s stock will be adversely affected; if they are met, the stock price will react positively. Sounds simple. Yet, everybody probably will agree that it is not. So, how can senior management set realistic targets or “guide” the market and then manage these expectations through the ups and downs of running a business?

An analogy of a public company’s management of investor expectations can be found in an economic event in 2007 that marked the beginning of what is now known as the “Financial Crisis” and the resulting stock market volatility around the world.