Michael

Michael asked about the definition of success for the VOCAL study, specifically regarding TIW non-inferiority versus ESAs and potential superiority endpoints, the importance of the RBC sub-study, and the status of AKB-097's IND reactivation and protocol changes.

Answer

Senior Vice President, Chief Research and Development Officer Steven K. Burke stated that the 350-patient VOCAL study aims to establish Vafseo's safety and effectiveness against ESAs (Mircera) for DaVita, with a primary endpoint of non-inferiority for hemoglobin control. He expects superiority on some hemoglobin-related safety endpoints (less rapid rises, high hemoglobins, dose adjustments). Steven K. Burke emphasized the RBC sub-study's importance in differentiating Vafseo's mechanism, noting that Vafseo-influenced red blood cells are different (bigger, more hemoglobin, uniform distribution of widths), which helps physicians understand clinical benefits like reduced death and hospitalization. Regarding AKB-097, he confirmed they are reworking the protocol for simplicity, but it remains fundamentally the same as FDA-agreed with Q32 Bio, and the IND will be activated upon resubmission of the finalized protocol.

Michael asked about the volume versus price dynamics for Amarin's U.S. business in Q4, specifically regarding net pricing pressure and whether the strategy for launching an off-brand generic has changed, including potential triggers.

Answer

Peter Fishman, Chief Financial Officer, noted that Q4 volume and price remained relatively consistent compared to Q3, with the majority of annual U.S. volume decline typically occurring in Q1 due to payer changes. Aaron Berg, President and Chief Executive Officer, added that volume tends to normalize after Q1, and pricing should remain consistent as long as Amarin maintains its exclusives, emphasizing the effectiveness of their U.S. strategy focused on payer access for profitable revenue.

Michael from TD Cowen asked about the path to higher margins for the energy meter side of MCS, its status, and how it impacts the mix negative versus water meters. He also sought clarification on Q1 organic revenue expectations by segment, given strong year-end orders and an organic guide implying a strong back half.

Answer

CFO Bill Grogan explained that margin improvement in energy meters stems from structural changes in engineering and technology, including value-add and value engineering projects. He noted that legacy projects in energy meters pressured 2025 margins, continuing into the first three quarters of 2026, leading to a sequential margin build for MCS, with robust margins expected by Q4. For Q1 organic expectations, Bill Grogan detailed MCS down 1-2 points, WSS flat, and Water Infrastructure and Applied Water slightly below their full-year guide due to first-half pressure from China.

Michael from Raymond James Financial asked about the specific types of lenders Origin Bancorp Inc is hiring, their target geographic areas, the expected pace of hiring through 2026 and into 2027, and whether expense growth might slow in 2027. He also questioned the consensus view of ROA stagnation in 2027 and the rationale for capital deployment, particularly regarding increased share buybacks.

Answer

Lance Hall, President and CEO of Origin Bank, stated that hires are primarily C&I-focused, with an emphasis on deposits and treasury management, including private bankers, treasury management officers, and C&I lenders, mainly in Texas but also across the footprint. He expects the pace of hiring to persist, leading to continued operating leverage enhancement. Drake Mills, Chairman, President and CEO, emphasized ongoing expense management efforts to offset new hire costs, ensuring ROA continues to ramp up in 2027, not stagnate. Jim Crotwell, Chief Risk Officer, highlighted the strategic reduction of the commercial banking team by 25% to reinvest in better producers. Drake Mills also discussed capital deployment, prioritizing organic growth, dividends (targeting 20% of earnings), and continued share buybacks.

Michael from Raymond James Financial asked about the specific types of lenders Origin Bancorp is hiring, their target geographic areas, and the expected pace of hiring through 2026 and into 2027. He also questioned whether expense growth might slow in 2027 due to positive operating leverage and sought clarification on Origin's ROA targets and capital deployment strategy, particularly regarding increased share buybacks.

Answer

Lance Hall (President and CEO, Origin Bank) stated that hires are primarily C&I-focused, with an emphasis on deposits and treasury management, targeting areas like Texas and Louisiana. He anticipates a consistent hiring opportunity. Drake Mills (Chairman, President and CEO, Origin Bancorp Inc) emphasized continuous expense management to offset new hire costs, aiming for ROA growth beyond 2027. He also discussed capital deployment, prioritizing organic growth, dividends (20% of earnings), and continued share buybacks.

Michael, on behalf of Alex Blostein, asked for elaboration on the specific investments driving the projected 8% non-compensation growth for fiscal 2026, particularly in technology and recruiting support. He also inquired about the firm's share repurchase cadence, noting a shift from the original $400-$500 million range to closer to $350-$400 million, and whether $400 million is a better run rate for the rest of the year.

Answer

Paul Shoukry, CEO of Raymond James Financial, detailed investments in cybersecurity, AI development, and infrastructure, emphasizing the necessity of scale for such investments. He mentioned the launch of Rai, an AI operations agent, to drive efficiencies. Butch Oorlog, CFO, confirmed $400 million in repurchases for the recent quarter and the current target, noting the $80 million preferred equity redemption as another capital deployment. He reiterated commitment to the $400-$500 million quarterly level going forward.

Michael (on behalf of Alex Blostein) sought clarification on the somewhat slower pace of share buybacks in the quarter, asking if it was related to the GreensLedge acquisition or a signal of an imminent larger deal. He also asked for an expansion on the financial parameters and criteria Raymond James uses for larger-sized M&A deals, including timing of accretion.

Answer

CFO Butch Oorlog clarified that the buyback pace was primarily influenced by a pause related to the senior note offering, and that the firm also utilized liquidity to redeem subordinated notes, keeping total capital deployment within guidance. CEO Paul Shoukry reiterated that the buyback target of $400-$500 million per quarter has not changed. For M&A, Shoukry outlined three consistent criteria: strong cultural fit, strategic fit (where 1+1 > 2), and attractive financial valuation for both shareholders. He emphasized discipline, ample capital, and a track record of retaining leadership from acquired firms.

Michael, on behalf of Alex Blostein, asked about the non-compensation expense outlook, specifically the implied 10% year-over-year growth for 2026, and requested details on the incremental areas of growth embedded in this figure, as well as any potential wiggle room based on top-line results.

Answer

James M. Marischen (CFO, Stifel Financial) explained that the non-comp guide was reduced by a full percentage point to 18%-20% on an adjusted basis. He noted that cost savings from the SIA sale and European reorg would take time to recognize, with some cloud migration and data center savings expected more in 2027. Marischen emphasized that the guide implies higher overall pre-tax margins for 2026.

Michael from Morgan Stanley questioned the drivers behind the sequential deceleration in service fee take rates, particularly the impact of larger enterprise merchants, and the expected trajectory given upcoming renewal impacts. He also sought details on the mechanical changes and beta learnings from the new managed markets solution.

Answer

Nir Debbi, Co-founder and President, Global-e, attributed service fee take rate volatility to mix shifts and a higher share of larger enterprise merchants, while emphasizing no significant overall change is expected. Amir Schlachet, Co-founder and CEO, Global-e, explained that the new managed markets flow now works through Shopify payments for a streamlined merchant experience, with beta testing underway for a full 2026 rollout.

Michael from Planta Bell asked for clarification on channel inventory dynamics across all regions, specifically how they relate to sell-in and sell-through numbers, and requested more detail on the performance of different gaming subsegments, including simulation, console, and PC gaming.

Answer

CEO Hanneke Faber noted that global gaming net sales were up 5% with double-digit demand growth, driven by China. She highlighted strong demand at the top end, with Pro gaming up over 25% and Sim gaming up over 10%, while the lower end also saw solid growth. CFO Matteo Anversa confirmed that overall channel inventory across all regions is healthy and within target weeks on hand. He clarified that a B2B/VC channel inventory dynamic from Q1 (sell-in outpacing sell-through) was resolved in Q2 (reverse dynamic), and in the Americas, sell-out outpaced sell-in, which is a positive sign for Q3.

Michael (on behalf of Joseph Giordano) asked for more details on Amphenol's strong year-over-year and sequential performance in the commercial aerospace market, specifically inquiring about the different parts of aerospace or applications where the company is achieving content or share gains.

Answer

CEO Adam Norwitt expressed satisfaction with the commercial aerospace business, attributing strong performance and content gains to the "quantum increase" in product breadth from the CIT acquisition. He detailed Amphenol's engagement across all electronic-intensive parts of an aircraft, from engines to cabin systems, leveraging CIT's cable, wire, and complex interconnect assemblies to offer the industry's broadest product range, further supported by a strong global footprint.