Wells Fargo’s (WFC) 3Q17

Tim Sloan – President and Chief Executive Officer

The scandal continues to have an impact

“There is a little bit of impact on some municipalities they have put us on probation or just said they are not going to use as much for a period of time. Though we had some municipalities that have taken us off that because we’ve executed on everything we said we are going to execute over the last year….I can’t commit to you Matt that we’ve finished everything because things are still in progress but we are very far along but I think it’s also important to reinforce — our review of all of our policies, procedures, practices is going to continue for a long time meaning that we got to continue to ask more of ourselves everyday”

John Shrewsberry – Chief Financial Officer

On rates

“…the benefit from higher rates increased average loan yields 5 basis points in the quarter, the seventh consecutive quarter of increasing loan yields…We’ve not made material changes in rates paid on consumer and small business banking deposits within our retail bank with the majority of our peers also holding these rates steady. We have implemented some incremental deposits repricing for commercial and wealth and investment management customers as market rates have increased.”

Johnson & Johnson (JNJ) Q3 2017

Dominic Caruso – EVP and Chief Financial Officer

They want a reform of the tax system

“To level the playing field with other industrialized countries, tax reforms should include three fundamental elements, a lower corporate income tax rate in line with other industrialized countries, the adoption of a modern, globally competitive International tax system allowing U.S. companies to manage their cash without tax penalty and of course greater incentives for innovation in the U.S”

Harley-Davidson’s (HOG) 3Q17

Matthew Levatich – President, Chief Executive Officer

Little residual tarnishing crossover between brand USA and American products

“…there’s actually a lot of really good research on this very topic generally that suggests that the connection between brand U.S.A., if you will, or political or foreign policy interpretations around the world versus American product brands and whether there is any sort of residual tarnishing crossing over, or whatever you might think, there doesn’t seem to be, and there’s some really very smart research on the topic that we’re paying a lot of attention to because clearly the Harley brand is inextricably linked with the ideals of America, which are freedom, independence and strength.

John Olin – Senior Vice President, Chief Financial Officer

The impact of hurricanes

“…the hurricanes adversely impacted the industry in Q3. While it is very difficult to isolate, we estimate the impact of the hurricanes accounted for approximately 1.5 to 2 percentage points of Harley Davidson’s retail sales decline during the quarter.”

Tight inventory levels

“when we look at shipments versus retail sales next year, there is an opportunity to ship in at a little bit higher rate just because of the way we’re taking the inventory out this year…..overall inventory levels will remain tight through the fourth quarter and into 2018.”

Calling the industry has been difficult

“I don’t know anyone that has called the industry right at this point. It’s an industry that has grown 28 out of 33 years, and there’s only been two periods in three decades where it’s been down – one was in the recession in 2009 and ’10, and then over the last two years here, so we’re doing our best to forecast it.”

Bank of America’s (BAC) Q3 2017

Brian Moynihan – Chairman and Chief Executive Officer

Moderate economic growth projected

“We expect moderate economic growth to continue this year and we expect the US to grow a little faster next year above 2% and outside of US is growing in the mid-3s.”

Consumers are spending

“in our consumer payments we are seeing consumer activity pickup. Consumers are spending, whether it is checks written, cash taken out of the ATM’s, P2P payments, and all the debit and credit cards, 5% more through the first nine months of 2017 than they did in the first nine months of 2016. That’s up faster growth rate than it has been in prior years.”

Optimism persists

“Our commercial clients continue to perform well. They continue to remain optimistic. They continue to look forward to continue implementation of a pro-growth agenda, particularly focused on meaningful tax reform. Housing starts home prices continue to remain on positive trends. Employment is strong and employers continue to search for skilled workers. So that leads to a solid atmosphere and we see no near-term indications of any change to it.”

Paul Donofrio – Chief Financial Officer

A rate hike would be beneficial

“If we get a late 4Q hike, as expected by the market, this should mostly benefit NII in Q1 2018. With respect to asset sensitivity as of 930 [ph] an instantaneous 100 basis point parallel increase in rates is estimated to increase NII by 3.2 billion over the subsequent 12 months. This is largely unchanged from June 30 and continues to be predominantly driven by our sensitivity to short-end rates.”

LVMH (LVMHF) Q3 2017

Chris Hollis

Growth everywhere

“Organic revenue is up in the double digits across all of our business groups in the third quarter and nine-month period with the exception of Wines & Spirits.”

Jean-Jacques Guiony – CFO

But is not expected to continue in cognac

“…the type of growth we have had over the last two years, I would say is not something that we can replicate forever; the more normalized growth in volumes for cognac is more something like 3% to 4%, exceptionally 5% but nothing really more than that….we have had two tough years in terms of supply. We had hail in 2016 and we have drought in 2017. So, altogether, what we put in our sellers at cognac was lower than what we anticipated. So, all in all, this created a little bit of constraint for the business for the quarters to come I would say. It’s hard to quantify and to know exactly what will happen, but it’s pretty sure that the type of growth we have had for a number of quarters will not be replicated in the future.”

Price influence on growth negligible

“as in the preceding quarters, if not all but a big, big chunk of the growth was made of mix and volume numbers, the price increases were negligible. So the bulk of it was mix and volumes.”

But this may change next year

“…we will probably be able to pass limited price increases to customers. But as you know, we do it end of Q1, early Q2. So, it’s way too early to discuss. But obviously, we’ll think about it and that will be an element of our policy for next year.”

Delta Air Lines’ (DAL) Q3 2017 Earnings Call

Ed Bastian – CEO

Recovered quickly from hurricane irma

“We generates 6% topline growth, a 16% operating margin and $1.6 billion of operating cash flow while facing pressure from rising fuel prices and $120 million headwind from Hurricane Irma. We rebounded quickly from Irma and were the first airline to resume service in most of the key airports in Florida”

Glen Hauenstein – President

Businesses expected to increase corporate travel

“Based on advance bookings, leisure yield, and demand strength continues and we are seeing further improvements in business fares. Indeed our last survey of corporate travel managers showed more than 85% project their spend will be maintained or increased in the fourth quarter and into 2018. This is a 9 point improvement from last year’s numbers and the best fourth quarter result since our survey debuted in 2011. It is also consistent with the trend we’ve seen in our corporate contracted revenues where fares and volumes have recently been in positive territory concurrently for the first time in three years”.

Business and leisure travel outlook

“I think the transatlantic has been on the strength of business demand and really that plays to our strong suit, given our concentration in the business centers in Europe. Leisure has been a different story. It’s been more about incremental traffic and lower yields and I think that will continue through the fall and winter….Europe is coming out of a multi-year recession. US economy is strong and people are traveling for business, which plays to the strength of carrier that’s embracing the business model as opposed to the leisure model.”

Tesco’s (TSCDF) Q2 2018

Alan Stewart – CFO

Inflation is back in the UK

Moving to the headline results of our UK and Irish segment. We’ve seen positive like-for-like of 2.1% for the half. Market conditions have been challenging with the return of inflation, but we’ve been able to protect our customers from more of this pressure than others by working closely with our supplier partners.

Bad debts way below pre-crisis levels

“Our bad debt-to-asset ratio has increased slightly to 1.3% but remains well below pre-financial crisis levels of 3% to 4% and is something that we continue to monitor very closely.”

Dave Lewis – CEO

They have increased prices by less than the market

“we have to keep the ability to flex as we need to. But clearly, we inflated by 1% less than the market, so that’s sharped our pricing and we continue to look for opportunities how we can sharpen the pricing.

Cisco Systems’ (CSCO) Q4 2017 Earnings

Charles Robbins – CEO

Cyber attacks have increased

“the 90% increase in cyber-attacks against IoT devices over the last year”

Currency headwinds in the UK

“On the UK, if you go back to Q3, we talked about it being significantly down and one of the primary drivers was the headwind created by currency. In Q4, what I’ll tell you is that headwind from currency remained, it did not ease up….I’ll say one final thing on the UK: while enterprise and commercial we saw a good uptick, service provider remained about the same.”

Orders improving

“In general, I think if you just look at our order rates that we released today, we went from Q3 negative four to flat in Q4. So clear that we saw improvement there.”

Kelly Kramer – EVP & CFO

Inventory is up

“A large majority of the inventory increase is driven by memory advanced purchases. So that protects us in for a large portion but we also have been as I mentioned in the lack — we’ve also been securing and committing to our purchase commitments for even more access to supply that also will ensure that we have the supply albeit perhaps at higher prices if they continue to rise.”

 

 

Tencent Holdings’ (TCEHY) Q2 2017

Martin Lau

It will take a while for online video to breakeven

“there is a lot of usage, more and more people are watching online video at longer and longer time, on a daily basis. But at the same time — and at the same time, advertising revenue has been increasing, and there is also an increasing willingness from consumers to pay. So, the subscription number as well as revenue has been increasing quite rapidly. On the other hand, the flip side of this is the cost of content has been increasing, even faster. So, what we see is that over time, we believe the content will continue to increase, but the rates would probably be lower. And the subscription, as we continue to increase, would deliver higher revenue per active user. So, we will get closer to a more equilibrium between cost and revenue at some point in time. But I think unfortunately at this point in time, the net loss of the business is still increasing.”

James Mitchell

High demand for AI-as-a-service 

“In terms of providing AI-as-a-service, I think this is definitely a one direction that we are going into in our cloud business already and we are seeing a lot of demand on that. And we have been able to sign up a lot of customers because of our ability to offer them AI capability. And that’s just the beginning. Over time, I think we will do much more on that.”

People are discoevring games on more communal venues

“In terms of games and targeting, if you look at games playing globally, particularly on the personal computer, it’s moved from being media driven to being increasingly community driven. 20 years ago, people discovered new games on the PC in the U.S. and Europe through computer magazines; now, they’re discovering them through reddit, through Twitch, through those kinds of more communal venues. And some of the same trends are underway in China. And what we’re trying to do is working with the game developers to make sure that we target their games to the users who are likely to be most receptive.”

Tesla (TSLA) Q2 2017 Earnings Call

Elon Reeve Musk – Tesla, Inc.

Model 3 is here with high production targets and zero promotion

 “…having with us steady production of Model 3s was an incredible milestone in the company’s history. We wanted to make a great, affordable electric car which is a fundamental thing that is missing. We wanted to make that from day one, and if we could only have done it sooner, we would have….I’m very confident that we will be able to reach a production rate of 10,000 vehicles per week towards the end of next year. And we remain – we believe on track to achieve a 5,000 unit week by the end of this year….what people should absolutely have zero concern about is that Tesla will achieve a 10,000 unit production week by the end of next year….We’re not promoting the car. If you go to our stores, we don’t even want to talk about it, really, because we want to talk about the thing that we can supply. If somebody orders a Model 3 now, it’s probably late next-year before they get it.”

The demand for Model 3 is pretty high

“there have been 518,000 gross reservations for 3, and we have 455,000 net reservations. But those cancellations occurred over the course of more than a year. The net gain since Friday, net of cancellations, has been over 1,800 per day.”

Demand for Model S and Model X unaffected by Model 3 release

“It should also be noted that one of our big concerns was that Model S, particularly, and Model X demand would suffer with the introduction of the Model 3. In fact, this has turned out to be the opposite situation. Model S and Model X demand increased with the release of Model 3.”

Learning to be less dumb

“When we make mistakes is because we’re stupid, not because we’re trying to mislead anyone. I just want to emphasize – I – we aspire to be less dumb over time. “

There may be more gigafactories coming

“we’re also thinking hard about, where do we put Gigafactorys three, four, five and six? We expect to keep the majority of our production in the U.S., but it’s, obviously, going to make sense to establish a Gigafactory in China and Europe to serve the markets there, because it’s not to build cars (29:23) in California and truck them halfway around the world, particularly when you’re trying to make things as affordable as possible – that really hurts.”