Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: This is the closing bell on this stock movers report.
Speaker 2: The company's making moves at the close of US trading
Speaker 2: with Carol Masser, Tim Stenovack, Romain Bostik, and Katie Greifel.
Speaker 1: We are getting earnings right now from Octa. Of course,
Speaker 1: this is the application software company. Here's the bottom line
Speaker 1: number EPs in the most recent quarter of Beat ninety
Speaker 1: one cents a share. The street looking for eighty five
Speaker 1: revenue of Beat seven hundred and sixty five million dollars.
Speaker 1: Street looking for seven to fifty two. Here's your guidance.
Speaker 1: I'm going to go for the full year. For the
Speaker 1: full year EPs arrange three seventy nine to three eighty seven.
Speaker 1: The street was looking for three seventy four to three
Speaker 1: eighty two. On the revenue side, three point one nine
Speaker 1: billion to three point two billion. Its previous guidance was
Speaker 1: three point one seven to three point one nine. So
Speaker 1: a modest beat on a modest raise, and at least
Speaker 1: the knee jerk reaction is to the downside's.
Speaker 3: Talk about net app. Those numbers crossing the wire rate.
Speaker 3: Now when it comes to twenty twenty seven adjusted EPs,
Speaker 3: the forecast. There beat estimates. The company gave a range
Speaker 3: they see that between eight dollars and seventy cents to
Speaker 3: nine dollars. The estimate had been for eight dollars and
Speaker 3: fifty three cents, So even the lower end of that
Speaker 3: range well above the estimate. Here, you take a look
Speaker 3: at the look back first quarter adjusted EPs, or rather
Speaker 3: the expectation for that EPs figure is between two dollars
Speaker 3: and five cents to two dollars and fifty cents. The
Speaker 3: estimate was for a dollar and eighty four cents. Again,
Speaker 3: big beats here, and you can see that shares absolutely
Speaker 3: flying in the after hours, Matt Hire by about thirteen
Speaker 3: to fourteen percent.
Speaker 2: Right now, all right, I'm looking at Autodesk, this company
Speaker 2: which makes the system software system used by builders and architects.
Speaker 2: Currently looking at shares trading just a little bit higher
Speaker 2: on the after market after announcing multi billion dollar acquisition.
Speaker 2: It's going to buy I maintain X for about three
Speaker 2: point six billion dollars in cash. It says maintain X
Speaker 2: is a leading modern maintenance and operations and operations solution
Speaker 2: solutions company. So a three point six billion dollar all
Speaker 2: cash transaction, and we're going to get the earnings from
Speaker 2: Auto desk right now as well. We have adjusted EPs
Speaker 2: two point nine nine or two dollars ninety nine cents
Speaker 2: versus two twenty nine in the previous year. First Quarternet
Speaker 2: revenue was a dollar sorry, one point nine to three
Speaker 2: billion dollars compared to one point eight nine billion dollars
Speaker 2: as the estimate, So beating on the sales line and
Speaker 2: beating on the operating margin line as well at thirty
Speaker 2: eight percent compared to well thirty eight point six percent
Speaker 2: was the estimate. So just beating there and beating on
Speaker 2: billings as well, one point sixty nine billion. The estimate
Speaker 2: was for one point five four billion, So it looks
Speaker 2: like in terms of everything except for the forecast, they're beating.
Speaker 2: That's important because they say second quarter AD just a
Speaker 2: DPS is only going to be three ten to three fourteen.
Speaker 2: So we'll watch how the street reacts to this, but
Speaker 2: so far the shares now they're turning down a little
Speaker 2: bit in the after hours trade.
Speaker 1: Yeah, I'm actually curious about this maintain X acquisition here.
Speaker 1: It's kind of interesting. We were talking yesterday and the
Speaker 1: day before on the close about this idea of whether
Speaker 1: we were actually going to start to see more M
Speaker 1: and A activity with regards to some of these privately
Speaker 1: held companies in the AI and tech space rather than
Speaker 1: IPO exits. And this is a big one. I mean,
Speaker 1: we're talking about three and was it three and a
Speaker 1: half billion dollars here? So not chump change here. And
Speaker 1: one of the guests we talked to yesterday guys basically
Speaker 1: said that we will likely see a lot more M
Speaker 1: and A activity rather than just IPO exits.
Speaker 3: Yeah. Absolutely, and that seems to be again the story.
Speaker 3: When it comes to Autodesk. You can see the show
Speaker 3: is actually moving higher in the wake of this news.
Speaker 3: Again double WHAMMI when it comes to that transaction, but
Speaker 3: also the earnings that they reported there. I do also
Speaker 3: want to re it net app because what a move
Speaker 3: we are seeing in that stock. You know, you think
Speaker 3: about the forecast that they gave healthily beating estimates, their
Speaker 3: stock absolutely soaring hire by about nine and a half percent.
Speaker 3: We were looking at gains of eighteen percent earlier, but
Speaker 3: still nothing to sneeze at, Matt.
Speaker 2: Yeah.
Speaker 3: No.
Speaker 2: We are also getting Dell earnings, which shouldn't be sneezed
Speaker 2: at either, and they're raising their fiscal year twenty twenty
Speaker 2: seven AI server revenue to about sixty billion dollars, their
Speaker 2: estimate going up ten billion to sixty billion. They had
Speaker 2: previously said it would be fifty billion dollars. They see
Speaker 2: full year revenue in total of one hundred sixty five
Speaker 2: that's for this year, one hundred sixty five to one
Speaker 2: hundred and sixty nine billion dollars, and they had seen
Speaker 2: revenue of one thirty eight to one forty two. So
Speaker 2: from a top end of one forty two to potentially
Speaker 2: one hundred sixty nine billion dollars. The Dell shares are
Speaker 2: soaring in the aftermarket a after this, or I think
Speaker 2: it's fair to say jumping is probably better than storing
Speaker 2: right now three point five percent, as you can see
Speaker 2: there on your screen. But they also raise their revenue
Speaker 2: forecast for the year exactly. Yeah, they raised their full
Speaker 2: year revenue forecast to a top end of one hundred
Speaker 2: and sixty nine billion dollars, and they had seen one
Speaker 2: hundred and forty two billion dollars. So the outlook for Dell,
Speaker 2: whether you're talking about the full year in total or
Speaker 2: the AI server revenue much higher than they had previously
Speaker 2: seen it.
Speaker 1: And when it comes to the AI server, obviously that's
Speaker 1: part of that Infrastructure solutions group. We should just point
Speaker 1: out that revenue just in that group alone is basically
Speaker 1: triple what it was a year ago. And of course
Speaker 1: Dell one of the big beneficiaries of the AI build out.
Speaker 1: O kye I thought software companies we're supposed to be
Speaker 1: a beneficiary of this as well.
Speaker 3: Yeah, absolutely some dispersion there. I will just point out
Speaker 3: that the games that you're seeing in Dell, they come
Speaker 3: after a one hundred and fifty three percent year to
Speaker 3: date rally for Dell, so we'll see if that holds.
Speaker 3: I do want to talk about Mango dB because it
Speaker 3: is pancaking right now after giving their numbers, so their
Speaker 3: first quarter adjusted EPs, it actually they beat estimates on
Speaker 3: that line, first quarter adjusted EPs coming in at a
Speaker 3: dollar and thirty two cents. The estimate had been for
Speaker 3: a dollar and nineteen cents. They raised their full year
Speaker 3: fiscal twenty twenty seven guidance as well, but still you
Speaker 3: can see that, you know when you look at the
Speaker 3: shares down about seventeen percent right now after reporting that
Speaker 3: first quarter result. Here we're going to take a look
Speaker 3: at why necessarily because again, taking a look at the
Speaker 3: first quarter numbers, not too too bad here.
Speaker 2: Yeah, So Mango dB getting hit hard as Dell rises
Speaker 2: on earnings. Let's take a look at American Eagle Outfitters
Speaker 2: as where I get all my clothes. First quarter net
Speaker 2: revenue one point two billion dollars, barely beating the estimate
Speaker 2: of one point one to nine billion dollars adjusted EPs
Speaker 2: at fourteen cents. That also beats the estimate of twelve cents.
Speaker 2: And yet the shares drop sixteen percent after earnings right well,
Speaker 2: right now down twelve point eight percent, but getting hit
Speaker 2: hard after beating in the reporting quarter. So I'm gonna
Speaker 2: have to look a little bit deeper into this for
Speaker 2: an outlook, but it looks like Wall Street expected more here.
Speaker 1: Yeah, And American Ego has been a little bit more
Speaker 1: of a basket case, dealing with a lot of inventory
Speaker 1: issues as well as just kind of a let's just
Speaker 1: say management issues with regards to getting that business back
Speaker 1: on track. Of course, we are still awaiting those earnings
Speaker 1: out of Gap, which has been a much more of
Speaker 1: a successful turnaround story. I do just want to turn
Speaker 1: back to Mango dB for a second, because the shares
Speaker 1: all over the map. They were down about twenty percent,
Speaker 1: now down about ten percent. And yesterday when we got
Speaker 1: those earnings out of Snowflake, there was this idea that
Speaker 1: basically everything in that sort of software ecosystem, those second
Speaker 1: tier software companies, the ones that are basically more the
Speaker 1: backbone software when it comes to the AI buildout, would
Speaker 1: somehow be beneficiaries. I'm trying to come through this release,
Speaker 1: Katie Greifeld, and I'm just a little confused as to
Speaker 1: why there's such negative reaction here. Yeah, maybe it's just
Speaker 1: because the guidance wasn't high enough, but this is definitely
Speaker 1: something to keep an eye on.
Speaker 3: Yeah. Absolutely, you take a look at adjusted first quarter
Speaker 3: EPs that came in above estimates, same thing too when
Speaker 3: you take a look at revenue. We're going to continue
Speaker 3: to keep an eye on that because that is a
Speaker 3: sharply negative reaction on Mango dB.
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