WEBVTT - Closing Bell: Earnings After the Bell

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is the closing bell on this stock movers report.

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<v Speaker 2>The company's making moves at the close of US trading

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<v Speaker 2>with Carol Masser, Tim Stenovack, Romain Bostik, and Katie Greifel.

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<v Speaker 1>We are getting earnings right now from Octa. Of course,

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<v Speaker 1>this is the application software company. Here's the bottom line

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<v Speaker 1>number EPs in the most recent quarter of Beat ninety

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<v Speaker 1>one cents a share. The street looking for eighty five

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<v Speaker 1>revenue of Beat seven hundred and sixty five million dollars.

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<v Speaker 1>Street looking for seven to fifty two. Here's your guidance.

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<v Speaker 1>I'm going to go for the full year. For the

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<v Speaker 1>full year EPs arrange three seventy nine to three eighty seven.

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<v Speaker 1>The street was looking for three seventy four to three

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<v Speaker 1>eighty two. On the revenue side, three point one nine

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<v Speaker 1>billion to three point two billion. Its previous guidance was

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<v Speaker 1>three point one seven to three point one nine. So

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<v Speaker 1>a modest beat on a modest raise, and at least

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<v Speaker 1>the knee jerk reaction is to the downside's.

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<v Speaker 3>Talk about net app. Those numbers crossing the wire rate.

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<v Speaker 3>Now when it comes to twenty twenty seven adjusted EPs,

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<v Speaker 3>the forecast. There beat estimates. The company gave a range

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<v Speaker 3>they see that between eight dollars and seventy cents to

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<v Speaker 3>nine dollars. The estimate had been for eight dollars and

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<v Speaker 3>fifty three cents, So even the lower end of that

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<v Speaker 3>range well above the estimate. Here, you take a look

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<v Speaker 3>at the look back first quarter adjusted EPs, or rather

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<v Speaker 3>the expectation for that EPs figure is between two dollars

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<v Speaker 3>and five cents to two dollars and fifty cents. The

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<v Speaker 3>estimate was for a dollar and eighty four cents. Again,

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<v Speaker 3>big beats here, and you can see that shares absolutely

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<v Speaker 3>flying in the after hours, Matt Hire by about thirteen

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<v Speaker 3>to fourteen percent.

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<v Speaker 2>Right now, all right, I'm looking at Autodesk, this company

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<v Speaker 2>which makes the system software system used by builders and architects.

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<v Speaker 2>Currently looking at shares trading just a little bit higher

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<v Speaker 2>on the after market after announcing multi billion dollar acquisition.

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<v Speaker 2>It's going to buy I maintain X for about three

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<v Speaker 2>point six billion dollars in cash. It says maintain X

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<v Speaker 2>is a leading modern maintenance and operations and operations solution

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<v Speaker 2>solutions company. So a three point six billion dollar all

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<v Speaker 2>cash transaction, and we're going to get the earnings from

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<v Speaker 2>Auto desk right now as well. We have adjusted EPs

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<v Speaker 2>two point nine nine or two dollars ninety nine cents

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<v Speaker 2>versus two twenty nine in the previous year. First Quarternet

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<v Speaker 2>revenue was a dollar sorry, one point nine to three

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<v Speaker 2>billion dollars compared to one point eight nine billion dollars

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<v Speaker 2>as the estimate, So beating on the sales line and

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<v Speaker 2>beating on the operating margin line as well at thirty

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<v Speaker 2>eight percent compared to well thirty eight point six percent

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<v Speaker 2>was the estimate. So just beating there and beating on

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<v Speaker 2>billings as well, one point sixty nine billion. The estimate

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<v Speaker 2>was for one point five four billion, So it looks

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<v Speaker 2>like in terms of everything except for the forecast, they're beating.

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<v Speaker 2>That's important because they say second quarter AD just a

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<v Speaker 2>DPS is only going to be three ten to three fourteen.

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<v Speaker 2>So we'll watch how the street reacts to this, but

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<v Speaker 2>so far the shares now they're turning down a little

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<v Speaker 2>bit in the after hours trade.

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<v Speaker 1>Yeah, I'm actually curious about this maintain X acquisition here.

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<v Speaker 1>It's kind of interesting. We were talking yesterday and the

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<v Speaker 1>day before on the close about this idea of whether

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<v Speaker 1>we were actually going to start to see more M

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<v Speaker 1>and A activity with regards to some of these privately

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<v Speaker 1>held companies in the AI and tech space rather than

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<v Speaker 1>IPO exits. And this is a big one. I mean,

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<v Speaker 1>we're talking about three and was it three and a

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<v Speaker 1>half billion dollars here? So not chump change here. And

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<v Speaker 1>one of the guests we talked to yesterday guys basically

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<v Speaker 1>said that we will likely see a lot more M

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<v Speaker 1>and A activity rather than just IPO exits.

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<v Speaker 3>Yeah. Absolutely, and that seems to be again the story.

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<v Speaker 3>When it comes to Autodesk. You can see the show

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<v Speaker 3>is actually moving higher in the wake of this news.

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<v Speaker 3>Again double WHAMMI when it comes to that transaction, but

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<v Speaker 3>also the earnings that they reported there. I do also

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<v Speaker 3>want to re it net app because what a move

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<v Speaker 3>we are seeing in that stock. You know, you think

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<v Speaker 3>about the forecast that they gave healthily beating estimates, their

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<v Speaker 3>stock absolutely soaring hire by about nine and a half percent.

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<v Speaker 3>We were looking at gains of eighteen percent earlier, but

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<v Speaker 3>still nothing to sneeze at, Matt.

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<v Speaker 2>Yeah.

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<v Speaker 3>No.

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<v Speaker 2>We are also getting Dell earnings, which shouldn't be sneezed

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<v Speaker 2>at either, and they're raising their fiscal year twenty twenty

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<v Speaker 2>seven AI server revenue to about sixty billion dollars, their

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<v Speaker 2>estimate going up ten billion to sixty billion. They had

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<v Speaker 2>previously said it would be fifty billion dollars. They see

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<v Speaker 2>full year revenue in total of one hundred sixty five

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<v Speaker 2>that's for this year, one hundred sixty five to one

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<v Speaker 2>hundred and sixty nine billion dollars, and they had seen

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<v Speaker 2>revenue of one thirty eight to one forty two. So

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<v Speaker 2>from a top end of one forty two to potentially

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<v Speaker 2>one hundred sixty nine billion dollars. The Dell shares are

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<v Speaker 2>soaring in the aftermarket a after this, or I think

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<v Speaker 2>it's fair to say jumping is probably better than storing

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<v Speaker 2>right now three point five percent, as you can see

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<v Speaker 2>there on your screen. But they also raise their revenue

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<v Speaker 2>forecast for the year exactly. Yeah, they raised their full

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<v Speaker 2>year revenue forecast to a top end of one hundred

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<v Speaker 2>and sixty nine billion dollars, and they had seen one

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<v Speaker 2>hundred and forty two billion dollars. So the outlook for Dell,

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<v Speaker 2>whether you're talking about the full year in total or

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<v Speaker 2>the AI server revenue much higher than they had previously

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<v Speaker 2>seen it.

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<v Speaker 1>And when it comes to the AI server, obviously that's

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<v Speaker 1>part of that Infrastructure solutions group. We should just point

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<v Speaker 1>out that revenue just in that group alone is basically

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<v Speaker 1>triple what it was a year ago. And of course

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<v Speaker 1>Dell one of the big beneficiaries of the AI build out.

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<v Speaker 1>O kye I thought software companies we're supposed to be

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<v Speaker 1>a beneficiary of this as well.

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<v Speaker 3>Yeah, absolutely some dispersion there. I will just point out

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<v Speaker 3>that the games that you're seeing in Dell, they come

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<v Speaker 3>after a one hundred and fifty three percent year to

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<v Speaker 3>date rally for Dell, so we'll see if that holds.

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<v Speaker 3>I do want to talk about Mango dB because it

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<v Speaker 3>is pancaking right now after giving their numbers, so their

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<v Speaker 3>first quarter adjusted EPs, it actually they beat estimates on

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<v Speaker 3>that line, first quarter adjusted EPs coming in at a

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<v Speaker 3>dollar and thirty two cents. The estimate had been for

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<v Speaker 3>a dollar and nineteen cents. They raised their full year

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<v Speaker 3>fiscal twenty twenty seven guidance as well, but still you

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<v Speaker 3>can see that, you know when you look at the

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<v Speaker 3>shares down about seventeen percent right now after reporting that

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<v Speaker 3>first quarter result. Here we're going to take a look

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<v Speaker 3>at why necessarily because again, taking a look at the

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<v Speaker 3>first quarter numbers, not too too bad here.

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<v Speaker 2>Yeah, So Mango dB getting hit hard as Dell rises

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<v Speaker 2>on earnings. Let's take a look at American Eagle Outfitters

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<v Speaker 2>as where I get all my clothes. First quarter net

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<v Speaker 2>revenue one point two billion dollars, barely beating the estimate

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<v Speaker 2>of one point one to nine billion dollars adjusted EPs

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<v Speaker 2>at fourteen cents. That also beats the estimate of twelve cents.

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<v Speaker 2>And yet the shares drop sixteen percent after earnings right well,

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<v Speaker 2>right now down twelve point eight percent, but getting hit

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<v Speaker 2>hard after beating in the reporting quarter. So I'm gonna

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<v Speaker 2>have to look a little bit deeper into this for

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<v Speaker 2>an outlook, but it looks like Wall Street expected more here.

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<v Speaker 1>Yeah, And American Ego has been a little bit more

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<v Speaker 1>of a basket case, dealing with a lot of inventory

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<v Speaker 1>issues as well as just kind of a let's just

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<v Speaker 1>say management issues with regards to getting that business back

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<v Speaker 1>on track. Of course, we are still awaiting those earnings

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<v Speaker 1>out of Gap, which has been a much more of

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<v Speaker 1>a successful turnaround story. I do just want to turn

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<v Speaker 1>back to Mango dB for a second, because the shares

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<v Speaker 1>all over the map. They were down about twenty percent,

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<v Speaker 1>now down about ten percent. And yesterday when we got

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<v Speaker 1>those earnings out of Snowflake, there was this idea that

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<v Speaker 1>basically everything in that sort of software ecosystem, those second

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<v Speaker 1>tier software companies, the ones that are basically more the

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<v Speaker 1>backbone software when it comes to the AI buildout, would

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<v Speaker 1>somehow be beneficiaries. I'm trying to come through this release,

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<v Speaker 1>Katie Greifeld, and I'm just a little confused as to

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<v Speaker 1>why there's such negative reaction here. Yeah, maybe it's just

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<v Speaker 1>because the guidance wasn't high enough, but this is definitely

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<v Speaker 1>something to keep an eye on.

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<v Speaker 3>Yeah. Absolutely, you take a look at adjusted first quarter

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<v Speaker 3>EPs that came in above estimates, same thing too when

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<v Speaker 3>you take a look at revenue. We're going to continue

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<v Speaker 3>to keep an eye on that because that is a

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<v Speaker 3>sharply negative reaction on Mango dB.

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<v Speaker 2>This Stock Movers report from Bloomberg Radio.

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