Earnings calls, like job interviews, are self-serving narratives. That doesn’t mean they’re untrue, just that companies carefully frame the story they want the market to hear.
Even so, these calls contain a wealth of information about the company, its market, and macroeconomic conditions. To keep things clear, I categorize what I hear into three groups:
The Good–—Unquestionably positive news.
The Interesting—New developments or surprising insights, exciting yet not firmly “Good.”
The Unknown—Everything I’m skeptical about. I don’t label it bad or ugly—it’s simply where, as an outsider, I don’t have enough visibility. It’s my way of staying optimistically skeptical.
These reports consistently get the highest readership, and many of you suggested a downloadable version. So, here it is. I hope you find it valuable.