This past quarter the topics of “Waste” and “Recycling” increased as a focus in earnings calls, making up over 8% of environmental topics covered on calls and increased from last quarter by 2%. The topic of “Wind Power'' also saw a marginal increase in focus. Our ESG Safeguard platform highlights some of the interesting disclosures that stood out related to these discussions.Read More
On Monday, over 100 global leaders committed $19 Billion to end and reverse deforestation. Over the past few years, many companies have been mentioned in our sentiment and news analytics with regard to deforestation, in both a positive and negative light. We use our ESG Safeguard platform to explore key players in industries that drive deforestation, consumer packaged goods and agriculture, to gauge the progress (or lack thereof) on their sustainability commitments.
Beyond Meat is an interesting analysis to uncover what are the fundamental issues at play when a company with highly touted ESG credentials misses the mark on earnings. Our Key Drivers analytics point to three primary drivers: CapEx, Guidance, and Margin.
Maybe it’s becoming business as usual for companies to take an ESG approach to their operations and strategy. This week’s prevailing ESG issue is business operations, a significant theme that cuts across various sectors. We take a look at some interesting storylines pertaining to electric vehicles, emissions targets and continuing demand for renewable energy development.
The rift between corporations and labor has only widened since the onset of the pandemic. Our ESG Safeguard platform shows ongoing supply chain constraints, coupled with strikes for John Deere and Kellogg, lifting Human Capital to center stage this week, replacing the environment as the dominant theme in the news cycle.
A Climate Week announcement from Ford on increased electrification efforts was the first of several automotive companies making similar announcements. As a result, our ESG Safeguard platform’s Top Movers rankings featured several key players and picked-up key activities from General Motors, Tesla, Toyota, TVS Motor and Volvo.
Sembcorp Marine has undergone a journey in moving away from their traditional business line of offshore oil equipment, towards wind development. We examine the company with our materiality analysis to discover their degree of follow-through, and review their recent expansion of service offerings in the form of offshore data centers.
Late last week on our ESG Safeguard platform, several Aerospace and Airline companies surfaced in the Top Movers feature, prompting us to take a closer look at the industry. Through our analysis we found Airbus exploring hydrogen planes and some antitrust sentiment for American Airlines and JetBlue.
We highlight three companies in the Food Products industry to examine their past Commitments with our new ESG Safeguard feature that analyzes Materiality.
With Climate Week approaching, the recent trend among companies is to make sustainability commitments—but do they really matter? How are commitments tracked? What do regulators think? We dig into these questions with our ESG tools and demonstrate how investors can make these important evaluations in real-time.
This week the Top Movers feature on our ESG Safeguard platform put cybersecurity back in the spotlight, surfacing some interesting storylines pertaining to Software and Services heavyweights, Microsoft and Alphabet. There was also a lawsuit for “Angry Birds” developer Rovio Entertainment as well as Human Capital and environmental matters surfacing for Starbucks.
The apparel industry has long been known for its resource and labor intensity. Some companies, like Nike and Hanes, have sought to improve the narrative for themselves. This week Lululemon’s sustainability efforts grabbed the headlines and attention of our ESG Safeguard platform along with Samsonite and Puma. We also flag the recent supply chain disruption in the industry due to a COVID outbreak in Vietnam.
Two weeks following President Biden’s announcement of an executive order aimed at making all new vehicles sold by 2030 electric, we focused our ESG Safeguard platform to take a closer look at an often overlooked part of the EV equation, the supply chain. In response to Biden’s announcements, key players are commiting to tackling the three major challenges faced by electric vehicle makers today; upskilling their workforce, obtaining crucial raw materials, and ramping up mass production of the necessary parts for electric vehicles (EV).
On the heels of a dire report from the UN’s Intergovernmental Panel on Climate Change (IPCC), business interests are increasingly deploying capital at scale to make meaningful changes towards green initiatives. Our ESG Top Movers revealed the stories that didn’t garner as much news volume compared to others, but significantly moved companies' sentiment scores in the latest 7-day period.
Using data from our ESG Safeguard platform and further analyses, we focused on one of the most exciting parts of the Q2 earnings call period, investment statements. In particular, we highlighted a few narratives from smaller firms regarding project developments and specific monetary spends that really stood out. This is a good example of how Amenity’s NLP solutions surfaces meaningful insights from smaller companies that are often overshadowed by narratives from larger firms.
This week we are featuring “Top Movers” by ESG impact, highlighting the companies with the largest sentiment moves in the Retail, Services, Finance and Communications sectors. Going a step further, we determine if these companies have any risk from a greenwashing perspective.
Our NLP tools filter out the noise to uncover red flags that are otherwise missed. New opportunities and risks are buried in your documents, reports, and earnings transcripts. Extract them today. In this ESG analysis, we discuss the early warning signs for Activision Blizzard’s gender and wage discrimination lawsuit. Our ESG Safeguard platform picked up on fair pay issues when we analyzed Ubisoft in the summer of 2020. In addition, we uncovered a high level of greenwashing over the past year in the company’s external image of inclusivity vs. the realities of severe misconduct in diversity and inclusion. Read the full story below.
The Materials sector is ripe for innovation. There have been interesting developments in recent weeks from a technological standpoint as well as some negative headlines for environmental infractions. This week, we use our ESG Safeguard platform to highlight the most significant movement in the sector.
This week, Amenity’s ESG Safeguard platform saw an increase in Human Capital issues in the Consumer Staples and Discretionary sectors. PepsiCo and Amazon were flagged for employee and workplace safety issues, respectively. Meanwhile the restaurant industry appears to be a bright spot, so we apply our Greenwashing Analytics to get to the truth.
Our NLP tools filter out the noise to uncover meaningful insights. New ideas are buried in your documents, reports, and earnings transcripts. Extract them today. In this ESG analysis we picked-up on financial inclusion at Mastercard. The company received favorable headlines detailing their initiatives around small- and medium-enterprise lending in the Middle East and Africa, expanding access to capital in those regions. While Mastercard is clearly making waves on the news front, we also examined all this from a greenwashing perspective. Is this all window dressing or an effective plan of action? See our results below.
In the wake of Royal Dutch Shell’s historic court ruling, an analysis conducted on our ESG Safeguard platform shows that discussion of Clean Technology has increased by 65% since late May with momentum picking-up for investments in renewables and low-carbon technologies. We examine Shell’s latest efforts as well as other meaningful Clean Tech developments from Reliance Industries based in India and RWE based in Germany.
We explore smaller companies, applying our ESG analytics to uncover value that is often overshadowed by larger companies grabbing the majority of headlines. While comparing scores over the last 30 days, some interesting developments surfaced for smaller companies making strides in ESG
How do investors separate fact from fiction among net zero commitments made by the world's largest banks, when they invested $3.8 trillion in fossil fuels since the 2015 Paris Agreement? We apply our Greenwashing analytics on statements made by the banks vs external news coverage to determine which banks are keeping their net zero commitments, or falling behind.
As demand and inflation put pressure on supply chains, companies that figure out how to reduce their resource use will be at a competitive advantage, especially during inflationary periods like the one we are currently experiencing. This week we are focusing on companies that are investing and innovating circular economies to reduce and reuse materials, as well as protecting ecosystems.
Why packaged, static ESG data sets don’t cut it—how to win at ESG investing amidst a throng of competitors and an ocean of generic ESG data.
With the latest hacking headlines surrounding the world’s largest meat producer, JBS, we look at the theme of Cyber Risk in our ESG Safeguard platform, and find that while it is practically impossible to predict a hack, looking at the overall Social and Governance scores of a company provides a fair indication of their exposure to risk.
This week we take a look at the latest round of earnings calls on our ESG Safeguard platform focusing on Clean Technology investments compared to prior years. While on average the mentions surrounding clean technology have leveled off over the past few years, we found that the proportion of statements discussing investment and specific action have increased.
Mining plays a key role in the production of electric vehicles, solar panels, and wind turbines, and yet is also one of the most environmentally destructive sectors. Governments are increasingly taking action amidst the wake of environmental mishaps, and this is an area of concern for mining going forward and the driving factor in surfacing the Metals and Mining sector on our ESG Safeguard platform.
The move to a low-carbon economy has taken center stage. This week on our ESG Safeguard platform we saw several major Clean Tech developments emerge as a result of the continued interplay between private and public interests in the renewable energy space.
With the announcement of a strategic partnership between BAE Systems and hydrogen fuel cell company Plug Power, it is becoming clear that more companies see hydrogen as the type of solution that is worth partnering in order to develop capabilities and opportunities faster than they would on their own.
The Energy sector has been a major focal point over the past two weeks on our ESG Safeguard platform, with companies like BP (BP), Exxon (XOM), and Chevron (CVX) commanding the most attention in the news. This prompted further analysis of recent developments in the Energy sector.
Over the past two weeks Alcoa (AA) ranked high for overall impact score, prompting us to take a closer look at the Materials sector and what other companies in the ecosystem may be doing. Digging into the data on our Safeguard platform we identified an increase in conversation around a new carbon-free technology that will provide low carbon aluminum to several key players across various industries.
Duke Energy (DUK) and Wells Fargo (WFC) lead on environmental impact over the past two weeks on our ESG Safeguard platform. With sizable operations in North Carolina, both firms have partnered to expand their solar energy footprint in the state, and in Wells Fargo’s case, are on the heels of their recent commitment to go net zero on emissions by 2050.
The latest domino to fall due to hacking exposure has been Ubiquiti (UI), the lowest scoring company in Technology Hardware Equipment in the past two weeks. We unpack recent developments in the Cyber Risk theme as seen on our ESG Safeguard platform and how other companies like Microsoft mitigated fallout in the market by being transparent with their cybersecurity breach.
The Greensill and Archegos Capital debacles for Credit Suisse, Nomura and others resulted in a significant volume of Social and Governance headlines in the Financial Sector, and implies a potential fallout for regulation as well as risk management in the banking industry.
This month Hershey made commitments towards addressing environmental issues in their supply chain. However, child labor in the supply chain continues to be a pervasive issue for the chocolate producer, and in recent months surfaced as a red flag in the news on our ESG Safeguard platform.
The theme of electrification continues to be a driving force on our ESG Safeguard platform. We picked up on German auto-maker Volkswagen taking recent initiative to increase production capacity and develop Europe’s charging infrastructure. In fact 4Q 2020 had VW slightly outselling more EVs than Tesla. We explore the impact of these recent headlines in detail.
Industrials continue to garner a high concentration of ESG coverage, ranking third on our ESG Safeguard platform over the past 7 days. Looking specifically at environmental mentions, FedEx (FDX) is in the top 5 based on recent commitments to reduce the environmental impact of their operations. We explore the potential risks involved with fleet electrification as well as other major fleet upgrades among peers.
In recent months we noticed a major uptick in Human Capital mentions of 450%. The rise can be attributed to the political climate as well as corporate action to get ahead of potential regulations. Mentions on our platform are largely centered around major corporations such as Amazon, Walmart, and Costco. We explore some of the news headlines that stood out.
Last week we saw a new sector rise to the top of our ESG Safeguard Platform: Industrials. Traditionally this sector rarely receives significant press attention, but over the past 7 days we saw a rise in focus on Clean Technology and Pollution Management. Singapore based Sembcorp Marine (SGX:S51) led the way with significant commitments in gearing operations towards wind energy installation. GE was not far behind.
In recent weeks, we focused on the environmental aspects of ESG. This week we shifted gears towards more social dimensions. Of particular note, the financial sector had the second highest mentions in the social category on our Safeguard ESG platform over the last 30 days.
The electric vehicle market is booming. In this ESG spotlight we focus on Airlines since the replacement of the internal combustion engine won’t just affect the automobile space. Throughout 2020 most of the ESG focus in Airlines has surrounded negative human capital and social themes. However, certain firms in the sector are starting to get onboard with the environmental paradigm shift.
GameStop (GME) had the second highest mentions in the past week on our ESG Safeguard platform. It’s no surprise that the majority of these mentions had little to do with the day-to-day operations of the brick and mortar video game retail company. We take a look at the increasing power of retail investors and other highlights in the Technology space.
Alibaba (BABA) was the top mentioned company in the Chinese market the past 3 months, and over the same time period ranked in the bottom 20 for Impact Score across all regions on our ESG Safeguard platform. Early in December in our Big Tech coverage we briefly mentioned the regulatory climate in China surrounding monopolies and antitrust issues. Now, the same regulatory environment that allowed China’s most successful companies to grow quickly has suddenly turned on them.
This week our Safeguard ESG Impact platform has Clean Technology garnering the second highest news mentions in the past month with Energy and Utilities making up 47% of that event type. A deeper look at the sector shows that EnelSpa (ENEL:IT), Duke Energy (DUK:US), and surprisingly Chevron (CVX), hold the top spots for ESG impact score.
Our latest ESG analysis shows how the level of risk surrounding cyber security is increasing. We explore some of the recent historical examples of cyber attacks, how it has affected stock price, and what it means for a SolarWinds recovery
We begin 2021 conducting a 2020 COVID-19 retrospective. Using our NLP we explore some of the sectors featured prominently in our Safeguard ESG index over the course of 2020: Consumer, Energy & Utilities, Finance & Real Estate, and IT & Communications. In our sector analysis we found the theme of diversity and inclusion woven throughout the year in both positive and negative ways. These findings are explored in detail.
Evercore's latest COVID coverage noted that vaccine sentiment reached a several month low, so we explored further on this development using our COVID Dashboard to uncover two themes driving the drop. We also look at the combined sentiment of the three companies that are on the front lines of vaccine development: Pfizer, Moderna and AstraZeneca.
During a time when many people are having difficulty providing for their families due to the pandemic, some corporations are making an effort to provide much needed holiday cheer. Here are some examples of the most poignant stories in recent corporate social efforts according to our Safeguard ESG Impact platform.
Over the past week, Amazon and Unilever are the two highest scoring companies on our Safeguard ESG Impact platform. Amazon has grown its Climate Pledge to include over 31 companies, with Unilever and Microsoft as the most recent signatories. Elsewhere in the consumer sector, Alibaba Group and Tencent Holdings were fined by China in an antitrust move.
Diversity and Inclusion is at the forefront of social issues in 2020 and large tech companies are still facing challenges in this arena despite public statements that they are addressing these issues. In the past 7 days the lowest scores on our Safeguard ESG Impact platform included 3 large tech companies. Facebook (FB) scored the lowest of the group due to ongoing issues around mounting antitrust lawsuits. Alphabet (GOOGL) and Pinterest (PINS) also touched the bottom 10 due to diversity and inclusion blunders. We dive into the Big Tech headlines that drove these ESG scores.
Over the past 2 weeks European beverage company, Diageo (DEO) leads the food and beverage category in ESG score and ranked 4th overall on the Amenity Safeguard Platform. The beverage giant, who owns brands such as Guinness, Smirnoff, and Captain Morgan rolled out a new 5 point sustainability plan for the next decade. Elsewhere in the food and beverage space Coca-Cola (KO) and Pepsi (PEP) garnered some attention for commitments on plastic use and scandal rocked Tyson Foods (TSN)
Last week the Zero Emission Transportation Association (ZETA) launched with Tesla as a major founding member. ZETA is a broad coalition that includes EV manufacturers, lithium miners, and utilities companies. The aim of ZETA is to promote policies at a level that will allow for 100% electric vehicle sales by 2030. We examine these events in detail with our Safeguard ESG impact tracker.
Clean Technology was the second most mentioned ESG theme in Q3 with hydrogen leading the way. We go into the underlying data with our Safeguard ESG impact tracker to explore the growing focus on hydrogen, and examine what major players in the industry are doing to further collaboration, partnerships, and development of key infrastructure projects around the world.
In the past seven days, McDonald’s (MCD) had the second lowest Impact Score on our Safeguard ESG impact platform. This week's score is driven by a lawsuit filed late last week by the Byrd brothers who own and operate four McDonald’s stores in the Nashville area. Importantly, the lawsuit brings to light economic discrimination towards Black franchisees by McDonald’s. The company attempts a remedy that's a band-aid approach at best.
This month our Safeguard ESG impact tracker shows HanesBrands leading our Consumer Discretionary category in ESG score and sentiment for October. The company achieved this by creating a new website devoted to their sustainability initiatives and rolling out new goals for 2030.
Starbucks sets goals for 2025 to increase diversity within the company. These goals will be tied to executive pay and target both the corporate and retail level. We explore how the company’s goals relate to the Citigroup report on racial discrimination and its negative effect on economic growth.
Last week Accenture announced they would go to net-zero emissions by 2025. Microsoft announces work from home is a permanent option for employees. We explore the sustainability impact for both companies and the IT sector with our Safeguard ESG impact tracker.
Walmart was the highest performer on our ESG impact index this month as they committed to increased renewable development and supply chain sustainability. We explore the Consumer Goods sector for the good and bad activities among companies in Walmart’s ecosystem.
Sifting through management’s earnings commentary for key insights presents its own challenges as the lack of clarity from executives and the noise from all things Coronavirus makes it easy to overplay or underplay a decision. Expedia and Hilton Worldwide Holdings are two recent examples of how NLP (done right) can be a successful anticipatory tool with regards to a company’s fundamentals in a volatile market.
This week corporate fraud and malfeasance has taken on the spotlight in our Safeguard ESG impact tracker with the “Ethics and Anti-Corruption” event type showing a 237% increase from the previous month. Deutsche Bank and J.P. Morgan are implicated in a money laundering story along with HSBC. We take a deeper look at these events and their impact on fundamentals in the Finance sector.
It’s no surprise that Zoom's revenue and cash generation growth has been stunning, but when we view the latest earnings through our NLP Insights Platform it returned surprising scores in terms of overall sentiment, margin and in particular, guidance which show a downward trend, so we explore further.
In a strong week for the Financials sector, Bank of America tops our ESG Impact tracker as they work to promote racial equality and economic opportunity. Meawhile CitiGroup stands out with their recent headlines in Diversity and Inclusion.
AMP, Australia’s largest asset manager, has been mired by scandals for years and serves as a prime example of how seriously underlying ESG issues can impact a firm. Our Insights Platform's ESG impact tracker explored the events leading up to another corporate scandal that will undoubtedly usher in reforms in corporate governance.
Walmart tops our environmental impact score this week with recent headlines outlining their plans to create a sustainable beef supply chain and their membership in a food waste coalition. Our Insights Platform’s ESG impact tracker extracted the high points of the company’s efforts over this month to find that in the past 30 days Walmart ranked highest in Impact Score amongst food retailers.
Our weekly ESG impact tracker explores recent headlines from the Electric Utilities sector regarding energy grid investments. In particular Xcel Energy bets big on electric vehicles, but they're not alone as peers are making their own moves.
Our weekly ESG impact tracker explores recent headlines from fast food giants in the Restaurant sector. Domino's and McDonald's present two diverging ESG trajectories that are worth tracking to determine what impact, if any, from a market perspective their recent headlines will have.
Last week, BP topped our weekly ESG impact tracker as they announced a radical 40% reduction in oil and gas production by 2030 while committing to a 10-fold increase in expenditure in low carbon energy. This week, the stock responded with a 7% jump. We go into some details on the results including the top 10 ESG impact ranked companies of the past week.
Using our ESG data we analyzed the coverage that recent climate pledge announcements from Amazon, Apple, and Microsoft received. Money moves based on big tech’s climate pledges with research from EPFR show that ESG funds hold $2.3 billion worth of Microsoft stock and $1.1 billion worth of Apple stock.
We examine the benefits of ESG integration for investors by exploring the recent Ubisoft scandal, where our NLP model flagged management issues weeks prior in news coverage.
We utilize our key driver framework to identify opportunities in the market where strong company level fundamentals such as Pricing Power, Capital Returns, or Market Position more than offset a horrible industry climate. We zero in on the Natural Gas sector as deserving of a closer look.
COVID-19’s effect on retail, hotel and office real estate comes as no surprise. But gathering actionable data from a sea of negative data is a perfect task for our NLP. We explore overall sentiment among REITs, and put together a ranking of the lowest performing REITs based on our Amenity Score. The data lead us to take a specific look at Healthcare REITs.
The goal of this analysis is to ascertain from earning call transcripts where strength in Market Position is driving positive Margin results. Our results show that Information Technology (IT) stood out for both metrics.
In a follow-up to our previous Restaurant sector write-up we identify off-premise sales growth as an interesting variable to track. Takeout and delivery channels have been the primary focus for most restaurant companies as they attempt to minimize cash burn rates. BJ’s Restaurants (ticker: BJRI) is one interesting case study we explore in detail.
We use our latest NLP tool, the Coronavirus Tracker, to investigate the state of the industry with an analysis around recent announcements that have caused concern as COVID-19 has imposed challenges to the operation of processing facilities.
Using Amenity’s suite of NLP solutions, we created a Coronavirus Tracker that analyzes news and earnings call transcripts to assess how public health outbreaks like the COVID-19 epidemic affect business operations and economic conditions.
Using Amenity’s suite of NLP solutions, we created a Health Epidemic Tracker that analyzes earnings call transcripts to assess how public health outbreaks like the coronavirus epidemic affect business operations and economic conditions.
We leveraged our NLP model to create the Amenity Coronavirus Tracker dashboard – a live feed which searches for relevant insights into the virus’ investment implications contained within news sources and earnings call transcripts. We highlight findings impacting retail, food delivery and teleconferencing.
As the rapid spread of the Coronavirus (COVID-19) has wreaked havoc on the economy and stock market of late, Restaurants have been one of the most affected sectors. However, using our NLP platform we have taken note of a theme that underlies the fear surrounding the virus: an uptick in positive commentary regarding Restaurant margins prior to the outbreak of the virus in the US.
We share our thoughts on Tesla and examine where TSLA’s Amenity Score has tracked since the start of 2017 in comparison to US Equities and the Automobile Manufacturers GICS Sub-Industry
We used the Amenity NLP Platform over the last three quarters to generate extractions regarding CapEx across the E&P sector. The results appear to show that E&P management teams and analysts are more focused on capital restraint, as both event counts and net polarity with regard to CapEx have trended positively since Q2’19. This data points to capital restraint being the first step toward investors taking a more constructive stance on the E&P sector which overall will be a wise path for the industry.
We highlight Wells Fargo (WFC) following the company's 4Q19 earnings call on 14 January 2020. With new CEO Charles Scharf now on the job following Tim Sloan’s departure, bullish long-term investors have been hoping for some resolve. Clarity of commentary is undoubtedly part of the wishlist that went undelivered as Scharf’s first earnings call registered a spike in deception to levels we haven’t seen from WFC since their 3Q17 call. We use Amenity's suite of NLP tools to explore the deception score and deception rate from 2015 to present to understand what level of clarity we can expect from Scharf's tenure.
With the peak of earnings season and Black Friday in the rear view mirror, we spent Cyber Monday using Amenity's suite of NLP tools to check on major retailers that have held earnings calls in the fourth calendar quarter of 2019. We present an analysis of the Retailing GICS Industry Group and confirm a significant bifurcation between small and large retail operations. We then offer deeper context for two widely followed retailers: Target Corporation (TGT) and The TJX Companies, Inc. (TJX). Our models uncovered evidence to suggest there may be tariff risks emerging that have not yet been fully digested by markets.
We highlight The J. M. Smucker Company (SJM) following the company's 2Q20 earnings call on 22 November 2019. Despite beating EPS estimates, the underlying story remains unsettling. Focusing more on the longer-term, our analysis finds questions about revenue have triggered deceptive answers by management in earnings calls at an increasing rate, which may further erode confidence given the ongoing calls for top-line improvements. This sort of evidence may provide fodder for bear theses and be a honeypot for activists. We narrate the context for our concern and detail deceptive language detected by Amenity’s NLP models.
We pilot a method for using Amenity's NLP solutions to analyze earnings calls for multiple companies and scoring their impact on portfolios of diverse, unevenly distributed holdings. We analyze Warren Buffett's holdings at Berkshire Hathaway as a test case and detail the Oracle of Omaha's Amenity Portfolio Score with attribution at the position level. We find that Berkshire Hathaway's portfolio score is significantly greater than the average company score in our universe (>12k companies, >10 years), which is a function of Buffett favoring companies with positive Amenity Scores.
We’re back on Fed Watch! With the Federal Reserve’s Open Market Committee expected to announce another rate decision at 2pm on 30 October 2019, markets have baked in more than a 90% likelihood of a 25 basis point cut. We've kept a close eye on regional and diversified banks as earnings season progresses to gauge how lower rates are impacting management commentary as well as their business and economic implications. We share our analysis context ahead of the Fed’s announcement and press conference.
Under Armour and Nike announced recently that their current CEOs are stepping aside and handing over control to the next generation of apparel giant leaders. Both successors have extensive experience in the upper echelons of corporate management. And as a result, we have both incoming CEOs on the proverbial record. We use Amenity’s suite of NLP tools below to analyze and estimate the level of clarity we can expect from Patrik Frisk and John Donahoe when they take the reins.
Going into another week of earnings, we offer a sneak peek into the large cap energy firms. Robust production, softening demand, and fears of a slowing US economy are set against a backdrop of trade tensions and industrial uncertainty that have left energy firms exposed. Amenity’s NLP models examined two early energy reporters: Kinder Morgan (KMI) and Schlumberger (SLB), finding both companies’ net sentiment on fundamentals turning south.
In a follow-up to our Netflix 3Q19 preview, Amenity’s NLP models analyzed what analysts and executive language on the call related to business fundamentals. We observed a modest uptick in Netflix’s sentiment score this quarter, meaning that management spoke more positively about things that matter to business health than last quarter. In our view, we read the Netflix plotline playing out as a pivot to international user and content markets.
Ahead of Netflix's 3Q19 earnings we took a look with the Amenity NLP toolkit to paint an objective picture of the company’s storyboard and found a drop off in positivity around key financial commentary and elevated deception. In their 3Q19 earnings call later today, we expect eyes to be fixated on screens when we get another commercial-free report from the company.
Earnings kick off this week with Financials posting an early first round of results. In a lower interest rate environment, we’re conscious that some banks may be feeling the squeeze on net interest margins. To baseline analyst and investor expectations, we used Amenity’s NLP tools to examine margin-related commentary from the last round of earnings calls for each of the Financials reporting this week.
Third quarter earnings kick off this week with expectations of a single-digit decline in S&P 500 margins after slight contractions over the last two quarters. To set the stage for a busy earnings season, we used Amenity’s NLP models and text analytics tools to look closely at how public companies spoke about margins on earnings calls last quarter.
We follow up on our regional banks white paper, applying our NLP platform to the full set of earnings calls from regional banks this quarter to explore the state of uncertainty before an expected rate cut on September 18th. Our rationale for close scrutiny of regional bank earnings calls holds true since our last publication as we find deceptive commentary indicating there may be underlying uncertainty regarding headwinds to net interest margins.
Under four months until the implementation of the California Consumer Privacy Act, Amenity’s text analytics tools detect a concerning absence of commentary in quarterly earnings calls. Against the backdrop of GDPR’s recent history, we would expect significantly more focus in the Q&A between analysts and management teams. We use our platform to contextualize CCPA in the broader context of global data privacy reform.
We use our NLP platform to analyze regional bank earnings calls and estimate economic uncertainty in advance of the Federal Reserve’s rate decision. We uncover elevated deception levels focused on margin topics related to interest rates and net interest income, revealing evasive and euphemistic language patterns.
Snapchat's 2Q19 showed a turnaround moment with beats on user growth and revenue, but a look beyond the headlines through the lens of our text analytics platform shows that while Deception has tapered off SNAP's 1Q18 high, the trend in Cost-Price is worth a closer examination.
Dave & Buster's Q4 earnings appeared positive on the surface, but our text analytics platform revealed that there are two concerns worth exploring. A Deception analysis of the earnings transcript showed a significant increase in language that was clichéd, evasive, vague, and containing euphamisms.
What question are executives most avoiding this year? We performed a Deception analysis with our text analytics platform to pinpoint one topic that drove the most deceptive responses by CEOs and CFOs in 2019 earnings calls.
As we close on Q1, our latest Forecast Index update reveals forward-looking commentary continues to improve, US consumer sentiment is mixed but skews positive, Juniper is the outlier with caution on 5G, plus wage and earnings pressures continue to make their presence felt.
While Micron's 2Q earnings reveal weakness, a closer look with our text analytics platform shows that Micron may have bottomed out, and could be poised for a resurgance in Cloud orders when comparing their latest sentiment with key players.
Smartsheet's Q4 earnings came in as expected from our earlier analysis, however our text analytics platform picked up on some interesting management commentary around net expansion rate that could lead to some trouble down the road. Is this a trap door or is Smartsheet managing expectations?
Keep up to date with our analyses and how we're making changes.