1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,880 --> 00:00:13,320 Speaker 2: This is the closing bell on this stock movers report. 3 00:00:13,560 --> 00:00:16,520 Speaker 2: The company's making moves at the close of US trading 4 00:00:16,760 --> 00:00:21,319 Speaker 2: with Carol Masser, Tim Stenebeck, Romaine Bostic, and Scarlet Food. 5 00:00:22,680 --> 00:00:24,680 Speaker 3: All right, quick check on the S and P. Five hundred, 6 00:00:24,920 --> 00:00:26,639 Speaker 3: they're not quite and even split a little bit more 7 00:00:26,680 --> 00:00:29,240 Speaker 3: to the upside, two hundred and ninety nine names Katie 8 00:00:29,280 --> 00:00:31,800 Speaker 3: Great gaining ground on this Tuesday, two hundred and two 9 00:00:31,840 --> 00:00:32,640 Speaker 3: to the downside. 10 00:00:32,680 --> 00:00:35,040 Speaker 4: Which is interesting because you take a look at the sectors. 11 00:00:35,080 --> 00:00:38,240 Speaker 4: You had more sectors that were lower on the day eight. 12 00:00:38,360 --> 00:00:41,320 Speaker 4: To be exact, only three sectors managing to finish in 13 00:00:41,400 --> 00:00:45,920 Speaker 4: the green. They were consumer, discretionary, industrials and healthcare. What 14 00:00:46,080 --> 00:00:51,080 Speaker 4: didn't do too hot today is utilities, communication services, and materials. 15 00:00:51,159 --> 00:00:53,920 Speaker 4: But still overall the S and P five hundred unchanged. 16 00:00:54,080 --> 00:00:57,040 Speaker 3: Yeah, interesting right to see that. It almost is like 17 00:00:57,120 --> 00:00:59,880 Speaker 3: we are waiting for a few things like earnings, whether 18 00:01:00,200 --> 00:01:02,760 Speaker 3: you know, we get that inflation report on Friday, looking 19 00:01:02,800 --> 00:01:05,320 Speaker 3: for some more clarity about kind of what's coming out 20 00:01:05,319 --> 00:01:08,120 Speaker 3: investors and certainly what it might mean for our FED policy. 21 00:01:08,520 --> 00:01:10,959 Speaker 1: All right, we are getting those Netflix Sarnings crossing the 22 00:01:11,000 --> 00:01:13,520 Speaker 1: wire right now, so let's dive into them. Texas Instruments 23 00:01:13,520 --> 00:01:16,120 Speaker 1: also crossing the wire on Netflix. I'm gonna start with 24 00:01:16,160 --> 00:01:18,600 Speaker 1: the guidance. The company says that for its full year, 25 00:01:18,959 --> 00:01:21,880 Speaker 1: it sees revenue of forty five point one billion dollars. 26 00:01:21,880 --> 00:01:24,440 Speaker 1: They had a previous range of forty four point eight 27 00:01:24,520 --> 00:01:27,560 Speaker 1: to forty five point two, so basically guiding towards the 28 00:01:27,600 --> 00:01:30,360 Speaker 1: top end of that range, but maybe just a smidge lower. 29 00:01:30,520 --> 00:01:32,440 Speaker 1: Now Here are the results for the third quarter. Their 30 00:01:32,440 --> 00:01:35,360 Speaker 1: fiscal third quarter free cash flow was a beat. Two 31 00:01:35,400 --> 00:01:39,160 Speaker 1: point sixty six billion. EPs was a beat. Excuse me, 32 00:01:39,360 --> 00:01:41,960 Speaker 1: I take that back. EPs was a miss five dollars 33 00:01:42,000 --> 00:01:43,760 Speaker 1: and eighty seven cents a share. The street was looking 34 00:01:43,800 --> 00:01:45,800 Speaker 1: for six dollars and ninety four cents a share, So 35 00:01:45,840 --> 00:01:49,840 Speaker 1: a beat on a miss on EPs. On the revenue side, 36 00:01:49,880 --> 00:01:51,920 Speaker 1: here it also looks like they came in a touch 37 00:01:52,000 --> 00:01:54,000 Speaker 1: light eleven point five to one billion The street was 38 00:01:54,000 --> 00:01:56,920 Speaker 1: looking for eleven point five to two billion dollars here, 39 00:01:57,040 --> 00:01:59,680 Speaker 1: And of course we don't get those subscriber metrics, but overall, 40 00:01:59,800 --> 00:02:01,560 Speaker 1: the two metrics that they really want us to pay 41 00:02:01,600 --> 00:02:04,280 Speaker 1: attention to with regards to revenue, and with regards to 42 00:02:04,840 --> 00:02:08,080 Speaker 1: bottom line EPs, it looks like a modest miss in 43 00:02:08,120 --> 00:02:10,840 Speaker 1: the most recent quarter and a modest guide to the 44 00:02:10,840 --> 00:02:12,839 Speaker 1: top end of the range for the rest of the year. 45 00:02:13,000 --> 00:02:15,480 Speaker 4: Well, you can see the disappointment in Netflix shares right now, 46 00:02:15,520 --> 00:02:18,160 Speaker 4: down five and a half percent. Will dig deeper into that, 47 00:02:18,160 --> 00:02:20,480 Speaker 4: but let's take a quick detour to what's going on 48 00:02:20,560 --> 00:02:23,679 Speaker 4: with Texas Instruments right now. Another miss when it comes 49 00:02:23,720 --> 00:02:27,480 Speaker 4: to third quarter EPs, missing estimates coming in at a 50 00:02:27,639 --> 00:02:30,680 Speaker 4: dollar and forty eight cents in the third quarter. The 51 00:02:30,720 --> 00:02:33,840 Speaker 4: consensus had been for a dollar and forty nine cents. 52 00:02:33,840 --> 00:02:36,120 Speaker 4: When it comes to fourth quarter revenue, the guide there 53 00:02:36,400 --> 00:02:38,760 Speaker 4: is for four point two two billion dollars to four 54 00:02:38,800 --> 00:02:42,440 Speaker 4: point five eight billion dollars. The estimate had been for 55 00:02:42,720 --> 00:02:47,240 Speaker 4: four point five billion dollars. So arrange there, you average 56 00:02:47,280 --> 00:02:49,760 Speaker 4: that and it comes in at the low end below 57 00:02:49,800 --> 00:02:52,560 Speaker 4: that estimate. So you can see Texas Instrument shares down 58 00:02:52,680 --> 00:02:55,480 Speaker 4: about four percent in the after hours trade. 59 00:02:55,160 --> 00:02:58,079 Speaker 5: Also down Netflix continuing to watch what's happening in the 60 00:02:58,120 --> 00:03:01,000 Speaker 5: after hours down about seven point three percent, and Lucas 61 00:03:01,000 --> 00:03:04,240 Speaker 5: Shaw out with his first take on earning so writing 62 00:03:04,240 --> 00:03:07,080 Speaker 5: that a tax dispute with Brazil cut into third quarter 63 00:03:07,120 --> 00:03:09,680 Speaker 5: earnings MARS results that otherwise fell in line with Wall 64 00:03:09,720 --> 00:03:12,440 Speaker 5: Street estimates. Netflix had to pay about six hundred and 65 00:03:12,520 --> 00:03:15,519 Speaker 5: nineteen million dollars to settle a multi year tax dispute 66 00:03:15,680 --> 00:03:18,440 Speaker 5: with Brazilian authorities going back to twenty twenty two, but 67 00:03:18,480 --> 00:03:20,800 Speaker 5: the company said it would have beaten forecast if not 68 00:03:20,919 --> 00:03:24,480 Speaker 5: for that expense. Shares down just about five point seven 69 00:03:24,560 --> 00:03:25,079 Speaker 5: five percent. 70 00:03:25,240 --> 00:03:26,960 Speaker 3: Yeah, I mean, keep in mind that this dock has 71 00:03:26,960 --> 00:03:29,040 Speaker 3: been certainly a now performer. They year up about thirty 72 00:03:29,080 --> 00:03:31,720 Speaker 3: nine percent year to date. But again the big headline 73 00:03:31,960 --> 00:03:35,240 Speaker 3: in terms of the outlook, Netflix seeing fiscal year revenue 74 00:03:35,280 --> 00:03:38,520 Speaker 3: forty five point one billion, had seen about forty four 75 00:03:38,560 --> 00:03:41,200 Speaker 3: point eight to forty five point two, so a bit 76 00:03:41,240 --> 00:03:44,280 Speaker 3: of a range, but that number below the higher point 77 00:03:44,320 --> 00:03:45,360 Speaker 3: of that range remain. 78 00:03:45,600 --> 00:03:46,920 Speaker 1: You know, I always like to look at sort of 79 00:03:46,960 --> 00:03:49,280 Speaker 1: you they talk about their content and some of the 80 00:03:49,320 --> 00:03:51,040 Speaker 1: big hits that they've had. Of course, you know, a 81 00:03:51,080 --> 00:03:55,120 Speaker 1: Happy Gilmore, which is one of their more successful at 82 00:03:55,200 --> 00:03:57,320 Speaker 1: least in terms of streams in the most recent quarter, 83 00:03:57,880 --> 00:03:59,800 Speaker 1: My Life with the Walter Boys and Honey Wives, and 84 00:03:59,840 --> 00:04:02,080 Speaker 1: if you others. But it gets to this idea here 85 00:04:02,360 --> 00:04:05,160 Speaker 1: that it's consuming that we're not actually being able to 86 00:04:05,200 --> 00:04:09,040 Speaker 1: see what those subscriber numbers are. The question is, how 87 00:04:09,080 --> 00:04:11,280 Speaker 1: is this actually adding to the bottom line? How is 88 00:04:11,360 --> 00:04:13,400 Speaker 1: fact is this adding to the top line? And that's 89 00:04:13,400 --> 00:04:15,320 Speaker 1: going to be a big question for I guess the 90 00:04:15,320 --> 00:04:18,120 Speaker 1: one analyst who's allowed to ask questions on that conference call. 91 00:04:18,520 --> 00:04:21,880 Speaker 4: Yeah, absolutely have to imagine it's made that man's job 92 00:04:21,920 --> 00:04:25,240 Speaker 4: a little bit more difficult here you dig into some 93 00:04:25,320 --> 00:04:27,800 Speaker 4: of the international markets as well. This is what we 94 00:04:27,839 --> 00:04:30,120 Speaker 4: have been discussing with an analyst over from morning Star 95 00:04:30,200 --> 00:04:32,440 Speaker 4: that when it comes to the growth opportunity, there's a 96 00:04:32,480 --> 00:04:35,200 Speaker 4: lot of focus on international. It seems like when it 97 00:04:35,200 --> 00:04:37,760 Speaker 4: comes to Latin America, when it comes to APAC revenue 98 00:04:37,800 --> 00:04:41,159 Speaker 4: there falling a little bit short of expectations for both 99 00:04:41,200 --> 00:04:44,240 Speaker 4: of those regions. The US and Canada and Europe did 100 00:04:44,320 --> 00:04:48,599 Speaker 4: manage to just slightly beat expectations, But again it's where 101 00:04:48,640 --> 00:04:52,120 Speaker 4: you expand to next. Is the US market saturated? That's 102 00:04:52,160 --> 00:04:54,120 Speaker 4: also one of the big questions here. 103 00:04:54,320 --> 00:04:57,120 Speaker 5: What does the content slate look like too, especially with 104 00:04:57,320 --> 00:05:00,760 Speaker 5: potential M and A. Greg Peters telling lucash Job back 105 00:05:00,800 --> 00:05:04,600 Speaker 5: in just two weeks ago at screen time that they're 106 00:05:04,600 --> 00:05:09,159 Speaker 5: more builders not buyers yet are reporting today from that 107 00:05:09,279 --> 00:05:12,800 Speaker 5: team shows that well, maybe they could be interested in 108 00:05:12,839 --> 00:05:16,240 Speaker 5: Warner Brothers Discovery, at least parts of Warner Brothers Discovery. 109 00:05:16,360 --> 00:05:18,560 Speaker 5: So if they get a movie studio, how much will 110 00:05:18,560 --> 00:05:20,359 Speaker 5: they pay for that movie studio? Or maybe this is 111 00:05:20,440 --> 00:05:23,680 Speaker 5: just trying to bid up the price so other rivals 112 00:05:23,720 --> 00:05:24,240 Speaker 5: have to pay more. 113 00:05:24,480 --> 00:05:28,320 Speaker 3: Maybe they could lean on Mattel for some ip or something. 114 00:05:28,560 --> 00:05:32,040 Speaker 3: Mattel reporting their earnings just crossing the bloomber terminal. Investors 115 00:05:32,040 --> 00:05:34,559 Speaker 3: don't like it down about fourteen percent. Let's go right 116 00:05:34,839 --> 00:05:37,960 Speaker 3: to the outlook. Company still sees fiscal year just ADPs 117 00:05:38,000 --> 00:05:40,599 Speaker 3: have a buck fifty four to two dollars sixty six 118 00:05:40,640 --> 00:05:43,719 Speaker 3: a share estimate is a dollar sixty one. Still sees 119 00:05:43,760 --> 00:05:48,520 Speaker 3: fiscal year net sales at constant currency up one percent 120 00:05:48,560 --> 00:05:51,880 Speaker 3: to up three percent, and fiscal year justin gross margin 121 00:05:51,920 --> 00:05:53,919 Speaker 3: of about fifty percent. The estimate on the street was 122 00:05:53,920 --> 00:05:57,160 Speaker 3: about fifty point three. But the company says sales dip 123 00:05:57,240 --> 00:06:01,440 Speaker 3: as tariff uncertainty delays Christmas orders. And that's not a 124 00:06:01,480 --> 00:06:04,640 Speaker 3: good thing to hear because you know how much the 125 00:06:04,680 --> 00:06:06,640 Speaker 3: holiday season is so important to this company. 126 00:06:06,680 --> 00:06:09,800 Speaker 1: Remain capital One also out with their report as we 127 00:06:09,800 --> 00:06:13,640 Speaker 1: were speaking here. The most recent quarter ADJUSTEDVPS comes in 128 00:06:13,920 --> 00:06:16,680 Speaker 1: higher than expectations five dollars and ninety five cents to 129 00:06:16,720 --> 00:06:20,599 Speaker 1: Street was looking for four dollars and thirty nine. Charge 130 00:06:20,600 --> 00:06:24,120 Speaker 1: Offs also better than expected three point four to seven billion. 131 00:06:24,240 --> 00:06:26,599 Speaker 1: The Street was looking for about three point seven billion, 132 00:06:26,720 --> 00:06:29,960 Speaker 1: So decent bottom line and a slight improvement when it 133 00:06:30,000 --> 00:06:33,840 Speaker 1: comes to the negative of charge offs. Here we should 134 00:06:33,839 --> 00:06:36,640 Speaker 1: also point out the company sat is efficiency ratio actually 135 00:06:36,640 --> 00:06:39,279 Speaker 1: increase wide and I should say fifty three point eight percent. 136 00:06:39,440 --> 00:06:41,760 Speaker 4: Yeah, and you can see Capital one shares moving slightly 137 00:06:41,839 --> 00:06:44,320 Speaker 4: higher after hours. This is a company too that had 138 00:06:44,320 --> 00:06:46,960 Speaker 4: a high bar when you consider the Capital one shares 139 00:06:47,120 --> 00:06:50,240 Speaker 4: higher by nearly twenty three percent on a total return 140 00:06:50,320 --> 00:06:53,360 Speaker 4: basis in twenty twenty five through today's close. I do 141 00:06:53,400 --> 00:06:55,480 Speaker 4: want to circle back to what we're seeing with Mattel 142 00:06:55,560 --> 00:06:58,160 Speaker 4: with Netflix. I actually have a way to tie them together. 143 00:06:58,200 --> 00:07:00,880 Speaker 4: You talk about IP Carol. Actually there was a report 144 00:07:00,920 --> 00:07:04,720 Speaker 4: out earlier today that Netflix has picked Mattel and Hasbro 145 00:07:04,920 --> 00:07:08,719 Speaker 4: for K Pop Demon Hunter's toy partnerships. That's not helping 146 00:07:08,720 --> 00:07:11,480 Speaker 4: out either stock at this moment right now, and I 147 00:07:11,560 --> 00:07:13,880 Speaker 4: think to pick up what you were saying about Mattel 148 00:07:14,280 --> 00:07:18,560 Speaker 4: Carol that to see tariff uncertainty delaying Christmas orders. I mean, 149 00:07:18,560 --> 00:07:22,040 Speaker 4: this is prime time obviously for a toy company and 150 00:07:22,120 --> 00:07:24,480 Speaker 4: really speaks to where we are when it comes to 151 00:07:24,480 --> 00:07:26,680 Speaker 4: the global trade landscape. Yeah. 152 00:07:26,720 --> 00:07:29,120 Speaker 3: I mean, listen, you're talking about a toy industry that 153 00:07:29,200 --> 00:07:31,800 Speaker 3: gets most of its products from China and that has 154 00:07:31,880 --> 00:07:34,960 Speaker 3: been tim as we know, a key target of President 155 00:07:35,000 --> 00:07:36,160 Speaker 3: Trump's tariff increases. 156 00:07:36,240 --> 00:07:38,760 Speaker 5: Okay, so other companies reporting too after the bell Intuitive 157 00:07:38,840 --> 00:07:41,560 Speaker 5: Surgic Goal, the maker of the Da Vinci surgical robot, 158 00:07:42,080 --> 00:07:45,480 Speaker 5: shares surging right now, up more than twelve percent in 159 00:07:45,520 --> 00:07:48,160 Speaker 5: the after hours. The company sees twenty twenty five a 160 00:07:48,360 --> 00:07:51,160 Speaker 5: just gross profit margin sixty seven percent to sixty seven 161 00:07:51,240 --> 00:07:54,760 Speaker 5: and a half percent third quarter just at EPs beat estimates. 162 00:07:54,840 --> 00:07:55,600 Speaker 5: Roman all right. 163 00:07:55,600 --> 00:07:57,400 Speaker 1: I also just though, want to very quickly just go 164 00:07:57,480 --> 00:07:59,120 Speaker 1: to Omnikom, because of course we're going to talk a 165 00:07:59,160 --> 00:08:01,360 Speaker 1: little bit more about Flicks and that buildout of its 166 00:08:01,400 --> 00:08:04,880 Speaker 1: ad platform. Omnicom one of the biggest ad platforms out there. 167 00:08:05,000 --> 00:08:07,679 Speaker 1: They reported our and it's relatively in line with estimates. 168 00:08:07,720 --> 00:08:10,600 Speaker 1: Four dollars and four excuse me, four point zero four 169 00:08:10,640 --> 00:08:13,240 Speaker 1: billion dollars in revenue in the most recent quarter and 170 00:08:13,320 --> 00:08:16,600 Speaker 1: two dollars and twenty four cents in adjusted EPs, relatively 171 00:08:16,600 --> 00:08:18,840 Speaker 1: in line with estimates, but you see a slight tick 172 00:08:19,000 --> 00:08:20,920 Speaker 1: to the downside and the shares in the appter. 173 00:08:20,680 --> 00:08:26,800 Speaker 2: Hours this stock mover's report from Bloomberg Radio. Check back 174 00:08:26,840 --> 00:08:29,040 Speaker 2: with us throughout the day for the latest roundup of 175 00:08:29,120 --> 00:08:32,400 Speaker 2: companies making news on Wall Street and for the latest 176 00:08:32,440 --> 00:08:36,640 Speaker 2: market moving headlines. Listen to Bloomberg Radio Live, catch us 177 00:08:36,679 --> 00:08:40,400 Speaker 2: on YouTube, Bloomberg dot com, and on Applecarplay and Android 178 00:08:40,440 --> 00:08:42,400 Speaker 2: Auto with the Bloomberg Business app.