Objective
The goal of this sentiment scoring method is to translate complex financial language into a simple, standardized signal that captures how a company is performing across five key areas. The AI acts like a trained analyst, interpreting the transcript through a structured lens that focuses on:
Direction of Change: Is performance getting better, worse, or staying the same compared to the previous year?
Strength of Signal: Are the comments and figures clearly pointing in one direction, or are they mixed or uncertain?
Evidence-Based Reasoning: Only assigns a score if there’s supporting information—either in the form of concrete YoY data (like “+15% revenue”) or strong directional commentary from management(like “we’re raising our sales forecast”).
This approach removes subjectivity and vague language, so that each score:
Reflects how a typical analyst would interpret the section
Can be compared across companies and time periods
Is always backed by a brief, understandable justification
Scoring: Positive 
Clear YoY improvement in financial or strategic performance
Optimistic tone backed by data or concrete management statements
Guidance or commentary signals confidence and momentum
Example: “Margins improved 3pp YoY driven by operational efficiencies and pricing power”
Scoring: Neutral / Mixed 
Performance is flat, mixed, or inconclusive
No clear guidance or directional signal is provided
Positive and negative elements offset one another
Example: “Revenue was flat YoY; price increases were offset by lower volumes”
Scoring: Negative 
Performance deteriorated year-over-year (e.g., drop inrevenue, margins, or outlook)
Management expresses concerns, flags risks, or signals worsening trends
Language includes terms like “declined”, “under pressure”, “weaker”
Example: “Sales declined 12% YoY due to reduced demand in key markets”
How AI applies this logic
It relies only on the earnings transcript content.
Evaluates year-over-year comparisons and direct statements from leadership.
Requires either data (e.g., “+18% net sales”) or strong directional language (“we’re raising guidance”).
Uses a topic-specific lens (e.g., outlook is judged only on forward-looking commentary).
Topic covered
Revenue development
How sales changed versus prior periods (e.g., year-over-year and quarter-over-quarter), plus what drove it: price/mix, volumes, new products, acquisitions/divestments, and currency effects.Profit development
How profitability moved (operating profit/EBIT/EBITDA, net income) and why—cost inflation/deflation, operating leverage, productivity, pricing, one-offs.Market conditions
The external backdrop affecting results: demand trends, customer/end-market health, competitive dynamics, input costs, supply chain, regulation, and macro indicators.Revenue outlook
Management’s view on future sales (often guidance): expected growth rates or ranges, key assumptions (demand, pricing, FX), and risks/upside factors.Profit outlook
Management’s expectations for margins and earnings (EBIT/EBITDA/net income): target ranges, cost and efficiency plans, investment impacts, and major sensitivities.