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 Stenebeck, Romaine Bostic, and Scarlet Food.
Speaker 3: All right, quick check on the S and P. Five hundred,
Speaker 3: they're not quite and even split a little bit more
Speaker 3: to the upside, two hundred and ninety nine names Katie
Speaker 3: Great gaining ground on this Tuesday, two hundred and two
Speaker 3: to the downside.
Speaker 4: Which is interesting because you take a look at the sectors.
Speaker 4: You had more sectors that were lower on the day eight.
Speaker 4: To be exact, only three sectors managing to finish in
Speaker 4: the green. They were consumer, discretionary, industrials and healthcare. What
Speaker 4: didn't do too hot today is utilities, communication services, and materials.
Speaker 4: But still overall the S and P five hundred unchanged.
Speaker 3: Yeah, interesting right to see that. It almost is like
Speaker 3: we are waiting for a few things like earnings, whether
Speaker 3: you know, we get that inflation report on Friday, looking
Speaker 3: for some more clarity about kind of what's coming out
Speaker 3: investors and certainly what it might mean for our FED policy.
Speaker 1: All right, we are getting those Netflix Sarnings crossing the
Speaker 1: wire right now, so let's dive into them. Texas Instruments
Speaker 1: also crossing the wire on Netflix. I'm gonna start with
Speaker 1: the guidance. The company says that for its full year,
Speaker 1: it sees revenue of forty five point one billion dollars.
Speaker 1: They had a previous range of forty four point eight
Speaker 1: to forty five point two, so basically guiding towards the
Speaker 1: top end of that range, but maybe just a smidge lower.
Speaker 1: Now Here are the results for the third quarter. Their
Speaker 1: fiscal third quarter free cash flow was a beat. Two
Speaker 1: point sixty six billion. EPs was a beat. Excuse me,
Speaker 1: I take that back. EPs was a miss five dollars
Speaker 1: and eighty seven cents a share. The street was looking
Speaker 1: for six dollars and ninety four cents a share, So
Speaker 1: a beat on a miss on EPs. On the revenue side,
Speaker 1: here it also looks like they came in a touch
Speaker 1: light eleven point five to one billion The street was
Speaker 1: looking for eleven point five to two billion dollars here,
Speaker 1: And of course we don't get those subscriber metrics, but overall,
Speaker 1: the two metrics that they really want us to pay
Speaker 1: attention to with regards to revenue, and with regards to
Speaker 1: bottom line EPs, it looks like a modest miss in
Speaker 1: the most recent quarter and a modest guide to the
Speaker 1: top end of the range for the rest of the year.
Speaker 4: Well, you can see the disappointment in Netflix shares right now,
Speaker 4: down five and a half percent. Will dig deeper into that,
Speaker 4: but let's take a quick detour to what's going on
Speaker 4: with Texas Instruments right now. Another miss when it comes
Speaker 4: to third quarter EPs, missing estimates coming in at a
Speaker 4: dollar and forty eight cents in the third quarter. The
Speaker 4: consensus had been for a dollar and forty nine cents.
Speaker 4: When it comes to fourth quarter revenue, the guide there
Speaker 4: is for four point two two billion dollars to four
Speaker 4: point five eight billion dollars. The estimate had been for
Speaker 4: four point five billion dollars. So arrange there, you average
Speaker 4: that and it comes in at the low end below
Speaker 4: that estimate. So you can see Texas Instrument shares down
Speaker 4: about four percent in the after hours trade.
Speaker 5: Also down Netflix continuing to watch what's happening in the
Speaker 5: after hours down about seven point three percent, and Lucas
Speaker 5: Shaw out with his first take on earning so writing
Speaker 5: that a tax dispute with Brazil cut into third quarter
Speaker 5: earnings MARS results that otherwise fell in line with Wall
Speaker 5: Street estimates. Netflix had to pay about six hundred and
Speaker 5: nineteen million dollars to settle a multi year tax dispute
Speaker 5: with Brazilian authorities going back to twenty twenty two, but
Speaker 5: the company said it would have beaten forecast if not
Speaker 5: for that expense. Shares down just about five point seven
Speaker 5: five percent.
Speaker 3: Yeah, I mean, keep in mind that this dock has
Speaker 3: been certainly a now performer. They year up about thirty
Speaker 3: nine percent year to date. But again the big headline
Speaker 3: in terms of the outlook, Netflix seeing fiscal year revenue
Speaker 3: forty five point one billion, had seen about forty four
Speaker 3: point eight to forty five point two, so a bit
Speaker 3: of a range, but that number below the higher point
Speaker 3: of that range remain.
Speaker 1: You know, I always like to look at sort of
Speaker 1: you they talk about their content and some of the
Speaker 1: big hits that they've had. Of course, you know, a
Speaker 1: Happy Gilmore, which is one of their more successful at
Speaker 1: least in terms of streams in the most recent quarter,
Speaker 1: My Life with the Walter Boys and Honey Wives, and
Speaker 1: if you others. But it gets to this idea here
Speaker 1: that it's consuming that we're not actually being able to
Speaker 1: see what those subscriber numbers are. The question is, how
Speaker 1: is this actually adding to the bottom line? How is
Speaker 1: fact is this adding to the top line? And that's
Speaker 1: going to be a big question for I guess the
Speaker 1: one analyst who's allowed to ask questions on that conference call.
Speaker 4: Yeah, absolutely have to imagine it's made that man's job
Speaker 4: a little bit more difficult here you dig into some
Speaker 4: of the international markets as well. This is what we
Speaker 4: have been discussing with an analyst over from morning Star
Speaker 4: that when it comes to the growth opportunity, there's a
Speaker 4: lot of focus on international. It seems like when it
Speaker 4: comes to Latin America, when it comes to APAC revenue
Speaker 4: there falling a little bit short of expectations for both
Speaker 4: of those regions. The US and Canada and Europe did
Speaker 4: manage to just slightly beat expectations, But again it's where
Speaker 4: you expand to next. Is the US market saturated? That's
Speaker 4: also one of the big questions here.
Speaker 5: What does the content slate look like too, especially with
Speaker 5: potential M and A. Greg Peters telling lucash Job back
Speaker 5: in just two weeks ago at screen time that they're
Speaker 5: more builders not buyers yet are reporting today from that
Speaker 5: team shows that well, maybe they could be interested in
Speaker 5: Warner Brothers Discovery, at least parts of Warner Brothers Discovery.
Speaker 5: So if they get a movie studio, how much will
Speaker 5: they pay for that movie studio? Or maybe this is
Speaker 5: just trying to bid up the price so other rivals
Speaker 5: have to pay more.
Speaker 3: Maybe they could lean on Mattel for some ip or something.
Speaker 3: Mattel reporting their earnings just crossing the bloomber terminal. Investors
Speaker 3: don't like it down about fourteen percent. Let's go right
Speaker 3: to the outlook. Company still sees fiscal year just ADPs
Speaker 3: have a buck fifty four to two dollars sixty six
Speaker 3: a share estimate is a dollar sixty one. Still sees
Speaker 3: fiscal year net sales at constant currency up one percent
Speaker 3: to up three percent, and fiscal year justin gross margin
Speaker 3: of about fifty percent. The estimate on the street was
Speaker 3: about fifty point three. But the company says sales dip
Speaker 3: as tariff uncertainty delays Christmas orders. And that's not a
Speaker 3: good thing to hear because you know how much the
Speaker 3: holiday season is so important to this company.
Speaker 1: Remain capital One also out with their report as we
Speaker 1: were speaking here. The most recent quarter ADJUSTEDVPS comes in
Speaker 1: higher than expectations five dollars and ninety five cents to
Speaker 1: Street was looking for four dollars and thirty nine. Charge
Speaker 1: Offs also better than expected three point four to seven billion.
Speaker 1: The Street was looking for about three point seven billion,
Speaker 1: So decent bottom line and a slight improvement when it
Speaker 1: comes to the negative of charge offs. Here we should
Speaker 1: also point out the company sat is efficiency ratio actually
Speaker 1: increase wide and I should say fifty three point eight percent.
Speaker 4: Yeah, and you can see Capital one shares moving slightly
Speaker 4: higher after hours. This is a company too that had
Speaker 4: a high bar when you consider the Capital one shares
Speaker 4: higher by nearly twenty three percent on a total return
Speaker 4: basis in twenty twenty five through today's close. I do
Speaker 4: want to circle back to what we're seeing with Mattel
Speaker 4: with Netflix. I actually have a way to tie them together.
Speaker 4: You talk about IP Carol. Actually there was a report
Speaker 4: out earlier today that Netflix has picked Mattel and Hasbro
Speaker 4: for K Pop Demon Hunter's toy partnerships. That's not helping
Speaker 4: out either stock at this moment right now, and I
Speaker 4: think to pick up what you were saying about Mattel
Speaker 4: Carol that to see tariff uncertainty delaying Christmas orders. I mean,
Speaker 4: this is prime time obviously for a toy company and
Speaker 4: really speaks to where we are when it comes to
Speaker 4: the global trade landscape. Yeah.
Speaker 3: I mean, listen, you're talking about a toy industry that
Speaker 3: gets most of its products from China and that has
Speaker 3: been tim as we know, a key target of President
Speaker 3: Trump's tariff increases.
Speaker 5: Okay, so other companies reporting too after the bell Intuitive
Speaker 5: Surgic Goal, the maker of the Da Vinci surgical robot,
Speaker 5: shares surging right now, up more than twelve percent in
Speaker 5: the after hours. The company sees twenty twenty five a
Speaker 5: just gross profit margin sixty seven percent to sixty seven
Speaker 5: and a half percent third quarter just at EPs beat estimates.
Speaker 5: Roman all right.
Speaker 1: I also just though, want to very quickly just go
Speaker 1: to Omnikom, because of course we're going to talk a
Speaker 1: little bit more about Flicks and that buildout of its
Speaker 1: ad platform. Omnicom one of the biggest ad platforms out there.
Speaker 1: They reported our and it's relatively in line with estimates.
Speaker 1: Four dollars and four excuse me, four point zero four
Speaker 1: billion dollars in revenue in the most recent quarter and
Speaker 1: two dollars and twenty four cents in adjusted EPs, relatively
Speaker 1: in line with estimates, but you see a slight tick
Speaker 1: to the downside and the shares in the appter.
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