Marek Fuchs
Once in a while, it is important to look at the business media -- with awe and surprise and all that good stuff -- and ask: What in the world went horribly right? We need to celebrate this unlikely turn of collectively good basic coverage.
On Friday, The Business Press Maven was perusing earnings reports when he happened upon AnnTaylor's(ANN Quote - Cramer on ANN - Stock Picks). The headline of the retailer's press release was unmistakably positive, especially given the current retail environment: "Ann Taylor Reports Increase in Second Quarter EPS." Too often, of course, the point of emphasis of the reporting company's press release headline becomes the default point of emphasis of the vast majority of business media coverage that follows. You wouldn't think the business media would take marching orders from the companies they cover -- supposedly with independence of mind and good critical thinking -- but it happens all the time. Even the subheadline was positive, spoon-feeding the business media a backup reason to be report giddily about the earnings: "Company Reiterates Full-Year 2008 EPS Outlook." The first three paragraphs of the press release were also positive, pressing the points of the EPS and full-year outlook. Look, though, at how MarketWatch, in a quick capsule summary article that came out less than half an hour after the earnings, did the right thing on behalf of you, the savvy investor. These instant analysis articles from business media outlets are the most prone to parroting the corporate line on earnings, setting the tone for the more-expansive coverage to come. But in this case, MarketWatch did not automatically take EPS to be the most important measurement of AnnTaylor's health, or lack thereof. Look at MarketWatch's brilliantly independent little lead: "AnnTaylor Stores Corp. said Friday that its second-quarter profit fell to $29.3 million from $31.7 million a year earlier. The per-share number rose to 51 cents a share from 50 cents a year earlier because of a decline in the number of shares outstanding. Sales dropped to $592.3 million from $614.5 million."
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