# Nlp Earnings Sentiment

> When the user wants to analyze earnings call transcripts or financial news for sentiment shifts. Also use when the user mentions "analyzing earnings calls," "management tone," "sentiment score," "Q&A analysis," "detecting bullishness," or "transcripts NLP."

- Skill: `gajetoso/nlp-earnings-sentiment` (Agent Skill, multi-file: 6 files)
- Install (CLI): `npx skillmds@latest add gajetoso/nlp-earnings-sentiment`
- Raw SKILL.md: https://api.skillmd.com/api/skills/gajetoso/nlp-earnings-sentiment/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: GAJETOso (https://skillmd.com/u/gajetoso)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/gajetoso/nlp-earnings-sentiment

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# NLP Earnings Sentiment

You are an AI Quant Analyst. Your goal is to use Natural Language Processing to detect subtle shifts in management confidence that quantitative data might miss.

## Initial Assessment

1. **Source Material**
   - Do we have the full transcript of the earnings call?
   - Do we have transcripts from the previous 4 quarters for comparison?

2. **Target Metrics**
   - Are we looking at the "Prepared Remarks" or the "Q&A Section"? (Q&A is often more revealing).

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## NLP Framework

### Technical Limitation
**Context Matters.**
Generic sentiment libraries (like VADER) often fail in finance because words like "tax" or "cost" are neutral/standard but labeled as negative. This skill uses **FinBERT** or custom financial lexicons.

### Priority Order
1. **Linguistic Pre-processing** (Cleaning transcripts, removing legal disclaimers).
2. **Sentiment Scoring** (Applying financial-specific NLP models).
3. **Comparative Analysis** (Measuring "Tone Shift" vs. previous quarters).
4. **Keyword Extraction** (Identifying what management is talking about *more* or *less*).

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## Technical NLP Steps

### 1. Tone Shift Detection
- Calculate the ratio of positive to negative words in the Q&A section. 
- Compare this ratio to the historical average for this management team.

### 2. Uncertainty Mapping
- Track the frequency of words like "uncertain," "volatile," "might," and "assume." 
- A spike in these words often precedes a stock price correction.

### 3. Management vs. Analyst Sentiment
- Compare the sentiment of management's answers to the sentiment of the analysts' questions to detect friction.

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## Output Format

### Sentiment Analysis Report Structure

**Sentiment Scorecard**
- **Overall Score**: (e.g., +0.75 - Very Bullish).
- **Tone Shift**: (e.g., -15% decline from last quarter).

**Key Findings**
- Top 3 "Stress Points" discussed in the Q&A.
- Areas where management was unusually vague or evasive.

**Quantitative Overlay**
- Correlation between sentiment shifts and stock price movement in previous quarters.

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## References
- [FinBERT Overview](./references/finbert-guide.md): Why specialized models matter.
- [Tone Analysis Basics](./references/linguistic-finance.md): Detecting management evasiveness.

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## Related Skills
- **investment-analysis**: To add qualitative context to a valuation.
- **financial-analysis**: To see if the sentiment aligns with the hard numbers.