August 18, 2016
Seven-day webcast replays are expiring everywhere as earnings season comes to an end.
If you're a regular listener of corporate earnings calls, you know how it goes: the drone of the well rehearsed scripted section, the Q&A where analysts pick a favorite word and make it the theme of the call, and the one analyst who expertly packs a twelve-part question into the last 60 seconds, as listeners’ fingers hover over the “end” button.
Let us now turn our attention to the most exciting but often overlooked feature of earnings calls: the metaphors.
There are certainly commonalities, regardless of which industry you follow, yet looking over this season's transcripts, it appears we have many unique metaphors of our own. In true RF fashion, they're tidily packaged into categories:
Fire, gardening, sailing … the list of metaphors goes on. If not said during the scripted session, these metaphors seem to pour out of the mouths of the analysts listening in. All is well and good until we start mixing so many metaphors we end up with no less than four in a single sentence. As an analyst once opined,
"While unit headwinds and inventory burn could weigh on results, we believe we are at the trough of the cycle and expect RF fundamentals to improve."
Now there's a sentence that only an analyst can understand.
Metaphors aside, there are certain terms we're hearing more prevalently on today's earnings calls. These terms reflect the trends of most interest to investors and the industry, and tracking them gives us a glimpse at the current and future state of RF.
So, there you have it: RF earnings calls … in a nutshell. (See what I did there?)
This article first appeared in Brent's Musings on Microwave Journal.
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