After the books closed: the quarter's biggest news happened too late to be in the numbers
The model's full reasoning — Q3 2017 call → NOWe need to determine if management reports that the most important positive developments happened so late in the period or shortly after it ended that the results contain little or none of their effect, with management marking the timing. Let's analyze the transcript. The CEO, Bobby Frist, mentions several positive developments. He says: "In February of 2017 conference call, we introduced some new product concepts... What’s exciting is that we’ve recently begun to market and sale some of those products. In fact, all six products have shown revenue and some sales orders in this quarter, which is great. Again, very small but a nice start." That's not necessarily late-breaking. He then gives updates on two products: Nurse Residency Pathway and OB Risk program. For Nurse Residency, he says "we were excited to see that, in the third quarter, Christa’s Southeast Texas Hospital, Saint Elizabeth's Nurse Residency program... achieved ANCC accreditation just recently." That's an accreditation, not a sale. For OB Risk, he says "At the end of third quarter, we’re really excited, because one of our largest customers in our entire customer base, selected our OB Risk program... for system-wide deployment in a multiyear agreement." That's a sale at the end of the quarter. Also, he mentions that same account renewed early and added four years, and added Knowledge Q. So that's a significant deal. But does management say that these late events are not reflected in the results? The CEO says: "There’s a lot to dive in the detail, the numbers. There is a mixture of things that contributed to the relative outperformance of third quarter. And so it's important to listen to the next section as we detail some of the onetime events that help Q3 be exceptional, and may be give a little context why essentially we have a little bit of sequential decline." That's about onetime events, not necessarily late-breaking. The CFO, Gerry Hayden, discusses revenue details. He mentions a one-time adjustment, and also says "We have also increased our guidance on capital expenditures to reflect this increased level of software development activity." Not about late events. The CEO later says: "I would like to take a moment to focus on some of our product lines and business segments from a business development point of view. And report out on our stimulation and resuscitation businesses...
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| ASM | Avino Silver & Gold Mines Ltd. | Q4 2023 | 2024-03-21 | C+ |
| KOPN | Kopin Corporation | Q4 2023 | 2024-03-14 | C+ |
| SCPH | scPharmaceuticals Inc. | Q3 2023 | 2023-11-08 | B |
| NBTX | Nanobiotix S.A. | Q2 2023 | 2023-09-27 | D |
| SWBI | Smith & Wesson Brands, Inc. | Q1 2023 | 2022-09-08 | C+ |
| YMM | Full Truck Alliance Co. Ltd. | Q2 2022 | 2022-08-25 | C+ |
| VNRX | VolitionRx Limited | Q1 2022 | 2022-05-12 | F |
| OPK | OPKO Health, Inc. | Q1 2022 | 2022-05-09 | D |
| BFIN | BankFinancial Corporation | Q1 2022 | 2022-05-06 | A |
| RNW | ReNew Energy Global Plc | Q2 2022 | 2021-11-18 | C |
| BFI | BurgerFi International, Inc. | Q3 2021 | 2021-11-12 | C |
| LIND | Lindblad Expeditions Holdings, Inc. | Q2 2017 | 2017-08-06 | C |
| PLAB | Photronics, Inc. | Q2 2017 | 2017-05-17 | C+ |
OPK · Q1 2022 → YESThe question is: Does management report that the MOST IMPORTANT POSITIVE DEVELOPMENTS of the period happened SO LATE IN THE REPORTED PERIOD, OR SHORTLY AFTER IT ENDED, that the results being presented...YES The transcript shows management treating the ModeX acquisition (announced and closed on the call date, May 9) and the Sema4/GeneDx deal (closed April 29) as major positive developments that occurred after the Q1 period ended. These are framed as key steps toward unlocking value and are highlighted as the "exciting announcement" that changed the call format.
RNW · Q2 2022 → YESThe question is: Does management report that the MOST IMPORTANT POSITIVE DEVELOPMENTS of the period happened SO LATE IN THE REPORTED PERIOD, OR SHORTLY AFTER IT ENDED, that the results being presented...YES The transcript shows management explicitly marking the timing of key positive developments: 400 MW commissioned "since the end of the quarter" (bringing operating capacity to 7 GW today, with another 400 MW scheduled "over the next couple of weeks"), plus the completed Telangana acquisition adding 260 MW.
ASM · Q4 2023 → YESThe question is: Does management report that the MOST IMPORTANT POSITIVE DEVELOPMENTS of the period happened SO LATE IN THE REPORTED PERIOD, OR SHORTLY AFTER IT ENDED, that the results being presented...