WEBVTT - Closing Bell: Earnings Sink Netflix, Texas Instruments, Mattel

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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 Stenebeck, Romaine Bostic, and Scarlet Food.

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<v Speaker 3>All right, quick check on the S and P. Five hundred,

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<v Speaker 3>they're not quite and even split a little bit more

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<v Speaker 3>to the upside, two hundred and ninety nine names Katie

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<v Speaker 3>Great gaining ground on this Tuesday, two hundred and two

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<v Speaker 3>to the downside.

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<v Speaker 4>Which is interesting because you take a look at the sectors.

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<v Speaker 4>You had more sectors that were lower on the day eight.

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<v Speaker 4>To be exact, only three sectors managing to finish in

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<v Speaker 4>the green. They were consumer, discretionary, industrials and healthcare. What

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<v Speaker 4>didn't do too hot today is utilities, communication services, and materials.

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<v Speaker 4>But still overall the S and P five hundred unchanged.

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<v Speaker 3>Yeah, interesting right to see that. It almost is like

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<v Speaker 3>we are waiting for a few things like earnings, whether

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<v Speaker 3>you know, we get that inflation report on Friday, looking

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<v Speaker 3>for some more clarity about kind of what's coming out

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<v Speaker 3>investors and certainly what it might mean for our FED policy.

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<v Speaker 1>All right, we are getting those Netflix Sarnings crossing the

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<v Speaker 1>wire right now, so let's dive into them. Texas Instruments

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<v Speaker 1>also crossing the wire on Netflix. I'm gonna start with

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<v Speaker 1>the guidance. The company says that for its full year,

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<v Speaker 1>it sees revenue of forty five point one billion dollars.

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<v Speaker 1>They had a previous range of forty four point eight

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<v Speaker 1>to forty five point two, so basically guiding towards the

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<v Speaker 1>top end of that range, but maybe just a smidge lower.

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<v Speaker 1>Now Here are the results for the third quarter. Their

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<v Speaker 1>fiscal third quarter free cash flow was a beat. Two

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<v Speaker 1>point sixty six billion. EPs was a beat. Excuse me,

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<v Speaker 1>I take that back. EPs was a miss five dollars

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<v Speaker 1>and eighty seven cents a share. The street was looking

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<v Speaker 1>for six dollars and ninety four cents a share, So

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<v Speaker 1>a beat on a miss on EPs. On the revenue side,

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<v Speaker 1>here it also looks like they came in a touch

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<v Speaker 1>light eleven point five to one billion The street was

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<v Speaker 1>looking for eleven point five to two billion dollars here,

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<v Speaker 1>And of course we don't get those subscriber metrics, but overall,

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<v Speaker 1>the two metrics that they really want us to pay

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<v Speaker 1>attention to with regards to revenue, and with regards to

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<v Speaker 1>bottom line EPs, it looks like a modest miss in

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<v Speaker 1>the most recent quarter and a modest guide to the

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<v Speaker 1>top end of the range for the rest of the year.

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<v Speaker 4>Well, you can see the disappointment in Netflix shares right now,

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<v Speaker 4>down five and a half percent. Will dig deeper into that,

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<v Speaker 4>but let's take a quick detour to what's going on

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<v Speaker 4>with Texas Instruments right now. Another miss when it comes

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<v Speaker 4>to third quarter EPs, missing estimates coming in at a

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<v Speaker 4>dollar and forty eight cents in the third quarter. The

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<v Speaker 4>consensus had been for a dollar and forty nine cents.

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<v Speaker 4>When it comes to fourth quarter revenue, the guide there

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<v Speaker 4>is for four point two two billion dollars to four

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<v Speaker 4>point five eight billion dollars. The estimate had been for

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<v Speaker 4>four point five billion dollars. So arrange there, you average

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<v Speaker 4>that and it comes in at the low end below

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<v Speaker 4>that estimate. So you can see Texas Instrument shares down

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<v Speaker 4>about four percent in the after hours trade.

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<v Speaker 5>Also down Netflix continuing to watch what's happening in the

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<v Speaker 5>after hours down about seven point three percent, and Lucas

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<v Speaker 5>Shaw out with his first take on earning so writing

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<v Speaker 5>that a tax dispute with Brazil cut into third quarter

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<v Speaker 5>earnings MARS results that otherwise fell in line with Wall

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<v Speaker 5>Street estimates. Netflix had to pay about six hundred and

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<v Speaker 5>nineteen million dollars to settle a multi year tax dispute

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<v Speaker 5>with Brazilian authorities going back to twenty twenty two, but

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<v Speaker 5>the company said it would have beaten forecast if not

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<v Speaker 5>for that expense. Shares down just about five point seven

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<v Speaker 5>five percent.

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<v Speaker 3>Yeah, I mean, keep in mind that this dock has

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<v Speaker 3>been certainly a now performer. They year up about thirty

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<v Speaker 3>nine percent year to date. But again the big headline

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<v Speaker 3>in terms of the outlook, Netflix seeing fiscal year revenue

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<v Speaker 3>forty five point one billion, had seen about forty four

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<v Speaker 3>point eight to forty five point two, so a bit

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<v Speaker 3>of a range, but that number below the higher point

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<v Speaker 3>of that range remain.

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<v Speaker 1>You know, I always like to look at sort of

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<v Speaker 1>you they talk about their content and some of the

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<v Speaker 1>big hits that they've had. Of course, you know, a

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<v Speaker 1>Happy Gilmore, which is one of their more successful at

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<v Speaker 1>least in terms of streams in the most recent quarter,

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<v Speaker 1>My Life with the Walter Boys and Honey Wives, and

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<v Speaker 1>if you others. But it gets to this idea here

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<v Speaker 1>that it's consuming that we're not actually being able to

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<v Speaker 1>see what those subscriber numbers are. The question is, how

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<v Speaker 1>is this actually adding to the bottom line? How is

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<v Speaker 1>fact is this adding to the top line? And that's

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<v Speaker 1>going to be a big question for I guess the

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<v Speaker 1>one analyst who's allowed to ask questions on that conference call.

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<v Speaker 4>Yeah, absolutely have to imagine it's made that man's job

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<v Speaker 4>a little bit more difficult here you dig into some

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<v Speaker 4>of the international markets as well. This is what we

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<v Speaker 4>have been discussing with an analyst over from morning Star

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<v Speaker 4>that when it comes to the growth opportunity, there's a

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<v Speaker 4>lot of focus on international. It seems like when it

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<v Speaker 4>comes to Latin America, when it comes to APAC revenue

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<v Speaker 4>there falling a little bit short of expectations for both

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<v Speaker 4>of those regions. The US and Canada and Europe did

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<v Speaker 4>manage to just slightly beat expectations, But again it's where

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<v Speaker 4>you expand to next. Is the US market saturated? That's

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<v Speaker 4>also one of the big questions here.

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<v Speaker 5>What does the content slate look like too, especially with

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<v Speaker 5>potential M and A. Greg Peters telling lucash Job back

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<v Speaker 5>in just two weeks ago at screen time that they're

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<v Speaker 5>more builders not buyers yet are reporting today from that

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<v Speaker 5>team shows that well, maybe they could be interested in

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<v Speaker 5>Warner Brothers Discovery, at least parts of Warner Brothers Discovery.

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<v Speaker 5>So if they get a movie studio, how much will

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<v Speaker 5>they pay for that movie studio? Or maybe this is

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<v Speaker 5>just trying to bid up the price so other rivals

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<v Speaker 5>have to pay more.

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<v Speaker 3>Maybe they could lean on Mattel for some ip or something.

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<v Speaker 3>Mattel reporting their earnings just crossing the bloomber terminal. Investors

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<v Speaker 3>don't like it down about fourteen percent. Let's go right

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<v Speaker 3>to the outlook. Company still sees fiscal year just ADPs

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<v Speaker 3>have a buck fifty four to two dollars sixty six

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<v Speaker 3>a share estimate is a dollar sixty one. Still sees

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<v Speaker 3>fiscal year net sales at constant currency up one percent

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<v Speaker 3>to up three percent, and fiscal year justin gross margin

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<v Speaker 3>of about fifty percent. The estimate on the street was

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<v Speaker 3>about fifty point three. But the company says sales dip

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<v Speaker 3>as tariff uncertainty delays Christmas orders. And that's not a

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<v Speaker 3>good thing to hear because you know how much the

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<v Speaker 3>holiday season is so important to this company.

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<v Speaker 1>Remain capital One also out with their report as we

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<v Speaker 1>were speaking here. The most recent quarter ADJUSTEDVPS comes in

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<v Speaker 1>higher than expectations five dollars and ninety five cents to

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<v Speaker 1>Street was looking for four dollars and thirty nine. Charge

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<v Speaker 1>Offs also better than expected three point four to seven billion.

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<v Speaker 1>The Street was looking for about three point seven billion,

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<v Speaker 1>So decent bottom line and a slight improvement when it

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<v Speaker 1>comes to the negative of charge offs. Here we should

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<v Speaker 1>also point out the company sat is efficiency ratio actually

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<v Speaker 1>increase wide and I should say fifty three point eight percent.

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<v Speaker 4>Yeah, and you can see Capital one shares moving slightly

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<v Speaker 4>higher after hours. This is a company too that had

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<v Speaker 4>a high bar when you consider the Capital one shares

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<v Speaker 4>higher by nearly twenty three percent on a total return

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<v Speaker 4>basis in twenty twenty five through today's close. I do

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<v Speaker 4>want to circle back to what we're seeing with Mattel

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<v Speaker 4>with Netflix. I actually have a way to tie them together.

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<v Speaker 4>You talk about IP Carol. Actually there was a report

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<v Speaker 4>out earlier today that Netflix has picked Mattel and Hasbro

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<v Speaker 4>for K Pop Demon Hunter's toy partnerships. That's not helping

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<v Speaker 4>out either stock at this moment right now, and I

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<v Speaker 4>think to pick up what you were saying about Mattel

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<v Speaker 4>Carol that to see tariff uncertainty delaying Christmas orders. I mean,

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<v Speaker 4>this is prime time obviously for a toy company and

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<v Speaker 4>really speaks to where we are when it comes to

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<v Speaker 4>the global trade landscape. Yeah.

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<v Speaker 3>I mean, listen, you're talking about a toy industry that

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<v Speaker 3>gets most of its products from China and that has

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<v Speaker 3>been tim as we know, a key target of President

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<v Speaker 3>Trump's tariff increases.

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<v Speaker 5>Okay, so other companies reporting too after the bell Intuitive

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<v Speaker 5>Surgic Goal, the maker of the Da Vinci surgical robot,

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<v Speaker 5>shares surging right now, up more than twelve percent in

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<v Speaker 5>the after hours. The company sees twenty twenty five a

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<v Speaker 5>just gross profit margin sixty seven percent to sixty seven

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<v Speaker 5>and a half percent third quarter just at EPs beat estimates.

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<v Speaker 5>Roman all right.

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<v Speaker 1>I also just though, want to very quickly just go

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<v Speaker 1>to Omnikom, because of course we're going to talk a

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<v Speaker 1>little bit more about Flicks and that buildout of its

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<v Speaker 1>ad platform. Omnicom one of the biggest ad platforms out there.

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<v Speaker 1>They reported our and it's relatively in line with estimates.

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<v Speaker 1>Four dollars and four excuse me, four point zero four

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<v Speaker 1>billion dollars in revenue in the most recent quarter and

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<v Speaker 1>two dollars and twenty four cents in adjusted EPs, relatively

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<v Speaker 1>in line with estimates, but you see a slight tick

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<v Speaker 1>to the downside and the shares in the appter.

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<v Speaker 2>Hours this stock mover's report from Bloomberg Radio. Check back

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