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 — Q2 2017 call → NOWe need to determine if management conveys that the level of business is now the new normal, and that they are operating to that level now. Look for statements about current activity being above recent norms and treated as baseline, and present-tense work to serve that level. In the transcript, management discusses strong inflows, record AUM, etc. But do they frame it as new normal? They mention "11th consecutive quarter of net inflows" and "organic growth rate of 9%". They talk about strategic investments and new products. However, they also mention a distribution cut in Japan that may cause outflows. They don't explicitly say "this is our new normal" or that the higher level is now the baseline. They discuss pipeline and future opportunities, but that's not the same as saying current activity is the new normal. They also mention that some strategies are seeing outflows. The tone is positive but not necessarily framing it as a step-change. They talk about "moment of truth" and needing to deliver more, but that's more about strategy. They don't say that what used to be exceptional is now routine. They mention "for the first time we're seeing significant demand for preferred securities strategies" - that could be a step-up, but they don't say it's the new normal. They also mention "we are for the first time enjoying a surge in institutional demand" - again, not necessarily new normal. They talk about pipeline and RFP activity, but that's future. They also mention that they expect the Japan distribution cut to cause outflows. So they are not treating the current level as a permanent baseline; they acknowledge potential declines. Also, they don't describe present-tense work to serve a higher level beyond general investments. They mention expense task force and investments, but not specifically ramping up to serve a higher level. So answer NO. Check: They say "we expect to maintain a 32.75% compensation to revenue ratio" - that's just guidance. They don't say "our business has stepped up to a new level". They talk about "record assets under management" but that's just a record, not necessarily new normal. They also mention "we are beginning to see green shoots" in DCIO, but that's not yet material. So overall, they are not framing it as new normal. They are cautious about Japan. So answer NO.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
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| 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.