Below are some of the most interesting things we heard on quarterly conference calls from Corporate America this week:

Supply Chain

Clorox (CLX) CFO Kevin Jacobsen commented, “We now project that transportation costs will remain elevated.”

Jacobsen continued, “We’re facing an even tougher cost environment than previously expected.”

SolarEdge Technologies (SEDG) CEO Zvi Lando referenced the “unprecedented logistics and supply chain challenges” and “a twelve week COVID-related shutdown in our Vietnam manufacturing facility” as restraining factors.

The SEDG management team referenced high demand for their products throughout the call, and made it clear that supply constraints were holding back growth. CFO Ronen Faier added, “whatever we can manufacture, we’re shipping.”

Some companies seem to be better insulated than others in terms of the supply chain headwinds. Lumen (LUMN) CEO Jeffrey Storey stated, “We’ve been in close communication with our diverse and reliable supplier base and have commitments from them on their ability to deliver. However, we take nothing for granted and this is an area where we will continue to closely monitor.”


Intercontinental Exchange (ICE) President Benjamin Jackson stated, “The supply shortages and price volatility that we saw in the third quarter are a peek into the future of what the energy transition could look like.”

Jackson later added, “Energy consumption is expected to double over the next 30 years, yet carbon emissions are expected to be reduced by half. This imbalance in supply and demand will introduce additional complexity and volatility to energy markets.”

Although Diamondback Energy (FANG) ramped up oil production during prior bull trends in oil prices, management is committed to maintaining oil production at current levels. According to CEO Travis Stice, “Moving to 2022, we are committed to holding our Permian oil production flat next year.” Oil demand has been robust, and the market is in need of a supply hike to lower prices for consumers. At FANG at least, increased supply does not appear to be coming.


Jacobsen stated, “we plan to take additional actions, including more pricing, resulting in increases to about 70% of our portfolio.” Based on this, consumers should expect to continue to face higher prices for products.

Johnson Controls (JCI) CFO Olivier Leonette added, “we do expect supply chain constraints and the inflationary environment to continue at least over the next couple of quarters.” Leonette continued, “The inflated level of pricing will result in margin headwinds”.

Broader Economy

Retail spending seems to be making a comeback, and Simon Property Group (SPG) CEO David Simon pronounced, “demand for our space from a broad spectrum of tenants is growing. Occupancy gains continued, retails sales accelerated… and cash flow increased.”

The quotes above are from our detailed Conference Call recaps.  Throughout earnings season, we publish Conference Call recaps for select companies.  These summaries include information regarding each company’s financial results, growth by segment, as well as some aspects of the business that management expects to impact future results.  As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.

Our Conference Call recaps are available to Bespoke Institutional subscribers only.  If you’re not currently a Bespoke Institutional subscriber, click here to sign-up for or upgrade to Bespoke Institutional now.

Bespoke Conference Call Recaps Published So Far This Earnings Season:

Johnson Controls (JCI)
Cloudflare (NET)
AmerisourceBergen (ABC)
Lumen Technologies (LUMN)
Diamondback Energy (FANG)
Sprout Social (SPT)
SolarEdge Technologies (SEDG)
Simon Property Group (SPG)
Clorox (CLX)
Apple (AAPL)
Amazon (AMZN)
Merck (MRK)
United Rentals (URI)
Ford (F)
Automatic Data Processing (ADP)
Boeing (BA)
Evercore (EVR)
McDonald’s (MCD)
Alphabet (GOOGL)
Microsoft (MSFT)
Digital Realty (DLR)
3M (MMM)
Facebook (FB)
Olin (OLN)
Tesla (TSLA)
Equifax (EFX)
Baker Hughes (BKR)
Netflix (NFLX)
Intuitive Surgical (ISRG)
Johnson & Johnson (JNJ)
NextEra Energy (NEE)

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