Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: This is the closing bell on the stock mover's report.
Speaker 2: The company's making moves at the close of US trading
Speaker 2: with Carol Master, Tim Stenebeck, Romain Bostick, and Scarlett Foo earning.
Speaker 3: It's crossing the wire qualcomm.
Speaker 4: Indeed qual common. Let's go right to the outlook. Fourth
Speaker 4: quarter revenue they're looking, folks for ten point three billion
Speaker 4: to eleven point one billion. That's above what the street
Speaker 4: is expecting, at least on the higher end. Ten point
Speaker 4: sixty one billion is what the street's expecting. Fourth quarter
Speaker 4: ad just at EPs more for the outlook two seventy
Speaker 4: five to two ninety five. The estimate on the street
Speaker 4: is for two eighty four. And again seeing let's go
Speaker 4: back to the past quarter. Third quarter just ADPs two
Speaker 4: seventy seven. That's better by a nickel in terms of
Speaker 4: what the street was expecting. And third quarter ad justed
Speaker 4: revenue of ten point thirty seven billion, pretty much in
Speaker 4: line with what the street was expecting. Tim ten point
Speaker 4: thirty three billion, Doc, little change is down about six
Speaker 4: tensive a percent here in the after mark.
Speaker 5: Yeah, pulling up that earnings release here the company actually
Speaker 5: it's not even up yet on their investor relations website.
Speaker 5: That's how early these numbers actually came out. Worth repeating.
Speaker 5: The fourth quarter revenue outlook, though, does seem to be
Speaker 5: what is moving the stock in the after hours, ever
Speaker 5: so slightly, bouncing between gains and losses down about half
Speaker 5: a percentage point. The company says nine million. Excuse me,
Speaker 5: The company says capex at seven hundred and eighty five
Speaker 5: million dollars. The company also said third quarter adjusted revenue
Speaker 5: coming in just above estimates at ten point three seven
Speaker 5: billion dollars. Once again, fourth quarter revenue that outlook ten
Speaker 5: point three billion to eleven point one billion. The estimate
Speaker 5: was for ten point six one billion dollars.
Speaker 3: Yeah.
Speaker 6: The promising sign in there, tim would be that there
Speaker 6: are signs of resilience and growth in the smartphone sector,
Speaker 6: and of course we'll be waiting for a read through
Speaker 6: on that that. When you're thinking about these large technology giants,
Speaker 6: the consumer exposure matters here a little bit. The high
Speaker 6: end phones though, are where they're doing even better, and
Speaker 6: so the question about that case shape for throughout the
Speaker 6: course of this earning season resumes.
Speaker 3: Yeah, and it's kind of interesting too.
Speaker 1: We should point out we're also expecting to get earnings
Speaker 1: out of ARM, the UK chip maker, and of course
Speaker 1: we're waiting on some of the big heavy weights in
Speaker 1: the indexes. That includes Microsoft, Meta, also expecting Ford Albumarl,
Speaker 1: LAMB Research, eBay, and Western Digital, amongst others.
Speaker 2: Guys.
Speaker 4: Yeah, and it's just a reminder that not all tip
Speaker 4: companies are the same. So Quadcom maybe giving a little
Speaker 4: bit of a better forecast, but we've been getting from
Speaker 4: Texas Instruments, Intel, which also gave more cautious outlooks. So
Speaker 4: it's just a reminder you got to take a look
Speaker 4: at each of these companies and what their fundamentals are
Speaker 4: and really what markets they play into forward reporting.
Speaker 5: In just a couple of minutes. We've got to see
Speaker 5: an interview with the company CEO coming up in.
Speaker 3: Just about a half hour.
Speaker 5: We're also expecting of course Meta platforms a little later too.
Speaker 6: Yeah, I've got to say, just to kind of get
Speaker 6: back to what we were talking about with Qualcommer, this
Speaker 6: is a stock that's only been up three point five
Speaker 6: percent this year, so there's a lot of room here
Speaker 6: for the upside of investors choose to read.
Speaker 3: It that way.
Speaker 6: But you're looking at it turn further negative here down
Speaker 6: up three percent.
Speaker 1: All right, Microsoft turnings are crossing the wire right now,
Speaker 1: So to his arm, let's start with Microsoft. The initial
Speaker 1: knee jerk reaction to the upside as the company says
Speaker 1: revenue in the most recent quarter seventy six point four
Speaker 1: to four billion, a beat the street was looking for
Speaker 1: seventy three point nine billion. Intelligent cloud revenue also coming
Speaker 1: in slightly above SIMN it's at twenty nine point eight
Speaker 1: eight billion.
Speaker 3: As you're another cloud revenue.
Speaker 1: XFX up about thirty nine percent in the border.
Speaker 3: The street was looking.
Speaker 1: For a gain of about thirty four percent in the quarter.
Speaker 3: I just want to point out one other quick thing.
Speaker 1: I know it's a much smaller business, but when it
Speaker 1: comes to the productivity and business revenue here you did
Speaker 1: actually see a beat there as well, thirty three billion dollars.
Speaker 1: And on the personal computing side, Tim Carroll, thirteen and
Speaker 1: a half billion, Street was looking for twelve point seven.
Speaker 4: I got to say, you know, I was curious about
Speaker 4: in terms of valuations for this one because Microsoft will
Speaker 4: fascinating to watch the trade here because it's bouncing around.
Speaker 4: I mean, this is a stock that's up twenty two
Speaker 4: percent year to date, and we are seeing off of
Speaker 4: these numbers initially a gain of about five percent, So
Speaker 4: investors definitely liking.
Speaker 3: What they got.
Speaker 4: I've got to say that as you're and other cloud revenue,
Speaker 4: maybe that's what's catching their attention. Up almost forty percent
Speaker 4: or up thirty nine percent, and that is easily beating
Speaker 4: the estimate of thirty four point two percent.
Speaker 5: Yeah, Satinadella, Chairman and CEO of Microsoft, saying, quote, cloud
Speaker 5: and AI is the driving force of business transformation across
Speaker 5: every industry and sector. We're innovating across the tech stack
Speaker 5: to help customers adapt and grow in this new era.
Speaker 5: And this year as you're surpassed seventy five billion dollars
Speaker 5: in revenue up thirty four percent, driven by growth across
Speaker 5: all workloads.
Speaker 6: And even beyond that, I'm looking at cap X numbers
Speaker 6: as well that came in for the quarter at least
Speaker 6: lower than expected. So that outperformance comes on the heels
Speaker 6: of not overspending either. I know a lot of investors
Speaker 6: are out there looking to make sure that they're getting
Speaker 6: a return on their buck, and you are seeing Microsoft
Speaker 6: just surging after this report because to your point, Carol Azora.
Speaker 3: Was really a big part of.
Speaker 6: What investors were looking for and making sure that more
Speaker 6: and more of that revenue was being driven by the
Speaker 6: AI initiative.
Speaker 4: And I guess I would say when it comes to AI,
Speaker 4: got to think about the Microsoft relationship with chat GPT.
Speaker 4: You know, they are kind of the king queen, if
Speaker 4: you will, in terms of what has set us going
Speaker 4: in terms of AI.
Speaker 3: We've got forward crossing the bloueb.
Speaker 1: Yeah, let's go to Ford for a second. We'll get
Speaker 1: back to Microsoft. Those earnings crossing the wire. Remember, the
Speaker 1: company had removed its guidance a quarter ago. It is
Speaker 1: now reinstating that guidance for the full year, and it
Speaker 1: does appear that guidance is lower than the one it
Speaker 1: gave before, saying that it expects earnings before interest in
Speaker 1: taxes so e BIT on an adjusted basis six point
Speaker 1: five to seven point five billion dollars. The low end
Speaker 1: of that range is slightly below the average street estimates,
Speaker 1: which was for six point eighty four billion. Also interesting,
Speaker 1: the company is trying to quantify the impact from tariffs,
Speaker 1: saying they see a tariff headwind of about two billion dollars.
Speaker 1: That's up from a previous guidance of about one and
Speaker 1: a half billion dollars, though they did point out that
Speaker 1: that number could be as high as a three billion,
Speaker 1: though they expect about one billion.
Speaker 3: Dollars in mitigation.
Speaker 1: If you will not quite sure what that means, that
Speaker 1: brings back down to two billion dollars.
Speaker 5: Well, speaking of high numbers, Meta share surging in the
Speaker 5: AFT hours up about three point six percent. The company
Speaker 5: sees third quarter revenue at forty seven and a half
Speaker 5: billion dollars to fifty billion dollars. The estimate was for
Speaker 5: forty six point two billion dollars. The company sees total
Speaker 5: revenue for the year to be in the range of
Speaker 5: forty seven point five to fifty billion dollars. It sees
Speaker 5: expenses to be one hundred and fourteen billion to one
Speaker 5: hundred and eighteen billion, so expenses were expected to be
Speaker 5: one hundred and thirteen to one hundred and eighteen billion dollars.
Speaker 5: Second quarter revenue once again beating estimate second quarter EPs
Speaker 5: coming in at seven dollars and fourteen cents. That's massively
Speaker 5: above expectations of five dollars and eighty nine cents. Second
Speaker 5: quarter revenue expected to be at forty four point eight
Speaker 5: three billion forty seven point five to two billion. Is
Speaker 5: the print share surging in the after hours up six
Speaker 5: point seven percent in climbing.
Speaker 4: Yeah, and that's after Meta has been quite an now performer.
Speaker 4: It's up about nineteen percent year to date. Hey, let's
Speaker 4: go to some commentary and context saying they expect third
Speaker 4: quarter twenty twenty five total revenue to be in the
Speaker 4: range of forty seven point five to fifty point five billion,
Speaker 4: And they say, while we are not providing an outlook
Speaker 4: for the fourth quarter revenue, we would expect our year
Speaker 4: over year growth rate in the fourth quarter of twenty
Speaker 4: twenty five to be slower than the third quarter as
Speaker 4: we lap a period of stronger growth in the fourth
Speaker 4: quarter of twenty twenty four. So they expect full year
Speaker 4: twenty twenty five total expenses to be in the range
Speaker 4: of one hundred and fourteen to one hundred and eighteen billions,
Speaker 4: So that's narrowed from their prior outlook of one thirteen
Speaker 4: to oney eighteen billion and reflecting a growth rate of
Speaker 4: twenty to twenty four percent year over year, And currently
Speaker 4: expect twenty twenty five capex including principal payments on finance
Speaker 4: leases to be in the range of sixty six to
Speaker 4: seventy two billion, narrowed from their prior outlook of sixty
Speaker 4: four to seventy two billion, and up approximately thirty billion
Speaker 4: year over year at the midpoint.
Speaker 6: I also want to look at ARM here as well,
Speaker 6: because they're forecasting profit lower than expected, they're ramping up spending. Here.
Speaker 6: You do see shares down or more than five point
Speaker 6: seven percent after the market after saying that fiscal second
Speaker 6: quarter earnings will be twenty nine cents to thirty seven
Speaker 6: cents to share. Analysts had seen thirty five cents on average.
Speaker 6: So there you go. Softer profit expectations there.
Speaker 1: All Right, recoil quickly eBay those shares higher in the
Speaker 1: after hours trade. Guidance for the third quarter of two
Speaker 1: point sixty nine to two point seven to four billion,
Speaker 1: above street estimates on both the low and the high
Speaker 1: end of the range. For the most recent quarter, the
Speaker 1: company did beat on both the top and bottom line,
Speaker 1: revenue growing six percent tim to two point seven three billion.
Speaker 5: All Right, shares a robin hood up four percent in
Speaker 5: the after hours. The company is not giving a twenty
Speaker 5: twenty five outlook for operating expenses, but second quarter adjusted
Speaker 5: EBADAH was a big beat, coming in at five hundred
Speaker 5: and forty nine million dollars. Second quarter net revenue also beat,
Speaker 5: at nine hundred and eighty nine million dollars. Once again,
Speaker 5: shares hired by about four and a half percent.
Speaker 2: This Stock Movers report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with
Speaker 2: the Bloomberg Business app.