New normal declared and staffed: management says the company's recent level of business has become its new baseline, and
The model's full reasoning — Q1 2024 call → NOWe need to determine if management conveys that the level of business is now the new normal, with both halves: (1) higher level already real, framed as new baseline, and (2) company operating to that level now. Let's analyze the transcript. Management discusses various things: strong Q1 results, capital plan, new projects, economic growth, data centers, etc. They mention record employment, new economic activity, Microsoft data center, etc. They talk about their capital plan and investments. They also mention that they are seeing strong growth and prospects. However, we need to see if they explicitly frame a higher level as the new baseline, and that they are operating to that level now. Key points: Gale Klappa mentions "the number of prospects looking at expanding or locating in the Milwaukee 7 region is stronger literally than at any time in the past two decades." That's about prospects, not actual business. They also mention Microsoft building a data center, and they are supplying energy. They talk about adding generation capacity. They mention that they have filed for new generation projects. They also mention that they are seeing strong economic growth. But is this presented as a new normal? They talk about their capital plan being the largest in history, but that's a plan. They also mention that they are investing additional $560 million in infrastructure. They talk about the I-94 corridor growth. However, they don't explicitly say that the level of business they are doing now is above what was recently usual and that it's now the baseline. They do mention that they are seeing strong demand and are building to meet it. But is that a step-up from their own recent experience? They mention that they have increased their load growth forecast from 0.5-0.7% to 4.5-5% starting in 2026. That's a forecast, not current actual. They also mention that they are seeing strong economic development. But they don't say that current orders or volumes are at a higher level that is now the norm. Also, they talk about the warmest winter, but that's weather. They reaffirm guidance. They talk about Q1 earnings being strong. But they don't frame it as a new normal. Let's look for specific language. They say "We're off to a strong start moving forward with our ESG progress plan." That's about plan.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| ECPG | Encore Capital Group, Inc. | Q1 2024 | 2024-05-08 | B |
| LINC | Lincoln Educational Services Corporation | Q1 2024 | 2024-05-06 | B+ |
| PDS | Precision Drilling Corporation | Q1 2024 | 2024-04-25 | B |
| KOPN | Kopin Corporation | Q4 2023 | 2024-03-14 | C+ |
| AEP | American Electric Power Company, Inc. | Q3 2023 | 2023-11-02 | C+ |
| GRBK | Green Brick Partners, Inc. | Q3 2023 | 2023-11-01 | B |
| TGLS | Tecnoglass Inc. | Q2 2023 | 2023-08-08 | A |
| SPT | Sprout Social, Inc. | Q2 2023 | 2023-08-04 | B+ |
| IMAX | IMAX Corporation | Q2 2023 | 2023-07-26 | B+ |
| DAL | Delta Air Lines, Inc. | Q2 2023 | 2023-07-13 | A |
| PFIE | Profire Energy, Inc. | Q1 2023 | 2023-05-13 | B |
| KE | Kimball Electronics, Inc. | Q3 2023 | 2023-05-06 | C+ |
| DKS | DICK'S Sporting Goods, Inc. | Q4 2022 | 2023-03-07 | B |
| TGT | Target Corporation | Q4 2022 | 2023-02-28 | C |
| UAL | United Airlines Holdings, Inc. | Q4 2022 | 2023-01-18 | B |
| PKOH | Park-Ohio Holdings Corp. | Q3 2022 | 2022-11-13 | B |
| EXFY | Expensify, Inc. | Q2 2022 | 2022-08-12 | D |
| CRL | Charles River Laboratories International | Q2 2022 | 2022-08-03 | C |
| CME | CME Group Inc. | Q2 2022 | 2022-07-27 | B |
| OGI | OrganiGram Holdings Inc. | Q3 2022 | 2022-07-14 | B+ |
| KFY | Korn Ferry | Q4 2022 | 2022-06-22 | B |
| HLIO | Helios Technologies, Inc. | Q1 2022 | 2022-05-10 | C |
| CCRN | Cross Country Healthcare, Inc. | Q1 2022 | 2022-05-04 | B |
| GTES | Gates Industrial Corporation plc | Q4 2021 | 2022-02-07 | C+ |
| LC | LendingClub Corporation | Q4 2021 | 2022-01-26 | A |
| LOW | Lowe's Companies, Inc. | Q3 2021 | 2021-11-17 | B+ |
| HNRG | Hallador Energy Company | Q3 2021 | 2021-11-09 | C+ |
| KTB | Kontoor Brands, Inc. | Q3 2021 | 2021-11-04 | A |
| ASAN | Asana, Inc. | Q2 2022 | 2021-09-01 | B+ |
| OWL | Blue Owl Capital Inc. | Q2 2021 | 2021-08-10 | B+ |
| ANIP | ANI Pharmaceuticals, Inc. | Q4 2016 | 2017-03-02 | B+ |
| EVBN | Evans Bancorp, Inc. | Q4 2016 | 2017-02-06 | B+ |
UAL · Q4 2022 → YESThe question is: Does management convey that the LEVEL OF BUSINESS THE COMPANY IS NOW DOING HAS BECOME ITS NEW NORMAL — that activity which would recently have been exceptional is now the company's cu...YES The transcript shows management framing the post-pandemic operating environment—higher margins, sustained demand recovery, capacity constraints, and investments in staffing/technology—as the new baseline for United's business. Scott Kirby explicitly states that structural changes have set the industry (and United) up for higher margins than pre-pandemic levels, with United achieving 9% adjusted pre-tax margin in H2 2022 ahead of schedule and expecting to hit it again in 2023. They describe current activity (e.g.
CRL · Q2 2022 → YESThe question is whether management conveys that the current level of business has become the new normal, meaning activity that would recently have been exceptional is now ordinary, and they're doing r...YES The transcript shows management framing the elevated activity in Safety Assessment (DSA segment) as the new baseline: backlog "well above the prior year level," "significantly above prior year levels," "unprecedented demand," "never seen this sort of commitment that far out with better pricing," and "large portion of 2023 revenue already booked.
DAL · Q2 2023 → YESThe question is: Does management convey that the LEVEL OF BUSINESS THE COMPANY IS NOW DOING HAS BECOME ITS NEW NORMAL — that activity which would recently have been exceptional is now the company's cu...YES The transcript shows management framing the current performance as the new baseline: record revenue and earnings, "highest quarterly earnings result in our history," "moves Delta beyond recovery and firmly on a great path forward," and executing ahead of the three-year plan with raised full-year guidance.