1 00:00:02,520 --> 00:00:09,800 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,920 --> 00:00:13,360 Speaker 2: This is the closing bell on the stock mover's report. 3 00:00:13,600 --> 00:00:16,560 Speaker 2: The company's making moves at the close of US trading 4 00:00:16,800 --> 00:00:21,319 Speaker 2: with Carol Masser, Tim Stenebeck, Romain Bostick, and Scarlet Food. 5 00:00:22,320 --> 00:00:24,560 Speaker 3: We do have some earnings. That's still earning season after all, 6 00:00:24,560 --> 00:00:26,360 Speaker 3: and this is not from the retail sector. It's from 7 00:00:26,400 --> 00:00:28,560 Speaker 3: the software sector. This is into IT, which of course 8 00:00:28,800 --> 00:00:32,800 Speaker 3: does own tax preparation software companies. Into IT reporting fourth 9 00:00:32,880 --> 00:00:35,280 Speaker 3: quarter just a EPs of two dollars seventy five cents, 10 00:00:35,280 --> 00:00:38,320 Speaker 3: beating the consensued assessment of two dollars sixty six cents. 11 00:00:38,479 --> 00:00:40,960 Speaker 3: Net revenue was also higher than anticipated three point eight 12 00:00:41,000 --> 00:00:43,960 Speaker 3: three billion dollars. When it comes to the outlook into 13 00:00:44,000 --> 00:00:47,000 Speaker 3: it CEA's revenue for this full year twenty twenty six revenue, 14 00:00:47,000 --> 00:00:49,200 Speaker 3: I should say twenty one billion to twenty one point 15 00:00:49,280 --> 00:00:52,199 Speaker 3: nineteen billion. Analysts, we're looking for twenty one point h 16 00:00:52,440 --> 00:00:56,000 Speaker 3: eight billion. Adjusted operating income anywhere from eight point sixty 17 00:00:56,000 --> 00:00:58,800 Speaker 3: one billion to eight point sixty nine billion. Analysts, we're 18 00:00:58,800 --> 00:01:00,640 Speaker 3: looking for eight point sixty seven billion. And you could 19 00:01:00,640 --> 00:01:03,360 Speaker 3: see the stock moving lower and after ours trading as 20 00:01:03,400 --> 00:01:06,880 Speaker 3: its adjusted EPs also comes in a twenty two ninety 21 00:01:06,920 --> 00:01:09,720 Speaker 3: eight to twenty three eighteen and as we're looking for 22 00:01:09,760 --> 00:01:12,160 Speaker 3: twenty two ninety nine. So it does appear that adjusted 23 00:01:12,200 --> 00:01:15,200 Speaker 3: operating income and perhaps that revenue is the number that 24 00:01:15,319 --> 00:01:17,240 Speaker 3: is concerning some investors. 25 00:01:17,480 --> 00:01:19,800 Speaker 1: All right, you see the shares there unchanged. Meanwhile, more 26 00:01:19,840 --> 00:01:23,040 Speaker 1: activity right now in ross stores that company just now 27 00:01:23,040 --> 00:01:25,479 Speaker 1: reporting earnings. The comp sales in the most recent quarter 28 00:01:25,520 --> 00:01:28,280 Speaker 1: did come in at about two percent. Now, that's relatively 29 00:01:28,319 --> 00:01:30,000 Speaker 1: in line with what the street was looking for, though 30 00:01:30,040 --> 00:01:32,320 Speaker 1: we should point out that growth rate is about half 31 00:01:32,360 --> 00:01:35,199 Speaker 1: of what it was from the year ago period. Now, 32 00:01:35,240 --> 00:01:37,160 Speaker 1: on the EPs side, it came in at a dollar 33 00:01:37,160 --> 00:01:39,360 Speaker 1: fifty six. The street was looking for a dollar fifty three, 34 00:01:39,560 --> 00:01:42,440 Speaker 1: so that is also a beat as well. In merchandise 35 00:01:42,520 --> 00:01:45,840 Speaker 1: inventories though, did rise to about four point seven percent, 36 00:01:46,160 --> 00:01:49,400 Speaker 1: relatively in line with testaments. Here's the forecast. The company 37 00:01:49,400 --> 00:01:51,520 Speaker 1: says that for the full year it sees EPs in 38 00:01:51,560 --> 00:01:54,120 Speaker 1: the range of six dollars and eight cents a share 39 00:01:54,360 --> 00:01:57,080 Speaker 1: to six dollars and twenty one cents a share. The 40 00:01:57,120 --> 00:02:00,880 Speaker 1: top end of that range is below the average of analystsessimates. 41 00:02:01,080 --> 00:02:03,440 Speaker 1: Analysts we're looking for about six twenty four. That might 42 00:02:03,480 --> 00:02:05,640 Speaker 1: be why you're seeing the knee jerk reaction with the 43 00:02:05,640 --> 00:02:06,880 Speaker 1: shares moving to the downside. 44 00:02:06,920 --> 00:02:10,880 Speaker 4: Okay, rossdown three percent in the after hours up three percent. Workday, 45 00:02:10,919 --> 00:02:13,720 Speaker 4: the HR cloud management software firm, the company out with 46 00:02:13,760 --> 00:02:16,880 Speaker 4: some news. In addition to numbers, second quarter adjusted earnings 47 00:02:16,880 --> 00:02:19,880 Speaker 4: per share coming in above estimate, second quarter revenue coming 48 00:02:19,919 --> 00:02:22,520 Speaker 4: in ever so slightly above estimates. Will go, Hey, go 49 00:02:22,560 --> 00:02:26,440 Speaker 4: ahead and say that actually just matches estimates. The news here, though, 50 00:02:26,520 --> 00:02:28,840 Speaker 4: is that the company has, says, signed a definitive agreement 51 00:02:28,840 --> 00:02:32,359 Speaker 4: to acquire Paradox, which it calls the AI company redefining 52 00:02:32,360 --> 00:02:35,400 Speaker 4: the front light candidate experience and reading from the statement 53 00:02:35,560 --> 00:02:36,239 Speaker 4: right here. 54 00:02:36,200 --> 00:02:36,720 Speaker 1: What does that mean? 55 00:02:36,720 --> 00:02:40,240 Speaker 4: It's English. It's a definitive agreement to acquire Paradox. They do. 56 00:02:40,720 --> 00:02:44,040 Speaker 4: It's an agent that uses conversational AI to simplify every 57 00:02:44,040 --> 00:02:47,160 Speaker 4: step of the job application journey, particularly for high volume 58 00:02:47,440 --> 00:02:52,000 Speaker 4: frontline industries, which employ nearly three billion workers globally. Workday 59 00:02:52,000 --> 00:02:54,320 Speaker 4: says the addition of Paradox will give it an AI 60 00:02:54,400 --> 00:02:58,480 Speaker 4: powered talent acquisition suite to help customers more efficiently find, hire, 61 00:02:58,520 --> 00:03:01,680 Speaker 4: and onboard every type worker. So I guess the idea 62 00:03:01,800 --> 00:03:04,840 Speaker 4: is that it makes the onboarding experience easier for those 63 00:03:04,880 --> 00:03:07,280 Speaker 4: folks who use workday software. But I'm going to have 64 00:03:07,320 --> 00:03:10,320 Speaker 4: to dig into this acquisition a little more later. 65 00:03:10,400 --> 00:03:12,320 Speaker 3: That sounds about right, and makes it more efficient for 66 00:03:12,360 --> 00:03:14,400 Speaker 3: the company as well after they spend the money to 67 00:03:14,440 --> 00:03:17,200 Speaker 3: buy this company. All right, let's just take a look 68 00:03:17,240 --> 00:03:18,800 Speaker 3: at what happened in trading when it comes to the 69 00:03:18,840 --> 00:03:22,760 Speaker 3: sector performances, because a down day overall here. Unlike previous 70 00:03:22,800 --> 00:03:25,760 Speaker 3: days where there were more advancing sectors than declining sectors, 71 00:03:25,919 --> 00:03:27,880 Speaker 3: even as the SMP five hundred decline, this was an 72 00:03:27,960 --> 00:03:32,239 Speaker 3: overwhelmingly negative day here. Among the sectors only energy and materials, 73 00:03:32,240 --> 00:03:33,959 Speaker 3: and these are some of the smaller sectors. As you 74 00:03:34,000 --> 00:03:36,800 Speaker 3: can see by the thin slices of the pie gained. 75 00:03:36,920 --> 00:03:40,240 Speaker 3: Everything else declined, led by consumer staples, and that of 76 00:03:40,240 --> 00:03:41,760 Speaker 3: course was being dragged down by Walmart. 77 00:03:41,840 --> 00:03:44,080 Speaker 4: Okay, well, let's go to some of the gainers. Tough 78 00:03:44,240 --> 00:03:46,040 Speaker 4: fit to find them. But the best performer in the 79 00:03:46,080 --> 00:03:48,040 Speaker 4: s and P five hundred, up more than fourteen and 80 00:03:48,040 --> 00:03:51,200 Speaker 4: a half percent was Paramount sky Dance, remember the new 81 00:03:51,240 --> 00:03:56,160 Speaker 4: tacker psky hire All day, even after some news that 82 00:03:56,160 --> 00:03:58,960 Speaker 4: two House Democrats Jamie Raskin and Frank Polone will examine 83 00:03:59,000 --> 00:04:03,040 Speaker 4: whether Paramount Global and Guidance Media accepted Quote illegitimate demands 84 00:04:03,040 --> 00:04:06,880 Speaker 4: from President Trump to secure approval of their merger last month. 85 00:04:07,280 --> 00:04:10,000 Speaker 4: Paramounts Guidance did not immediately respond to requests for comment. 86 00:04:10,080 --> 00:04:13,600 Speaker 4: The White House and the FCC also did not immediately 87 00:04:13,720 --> 00:04:18,279 Speaker 4: respond to requests for comments. Select Quote surged today. This 88 00:04:18,360 --> 00:04:20,720 Speaker 4: was among the most actively traded stocks at more than 89 00:04:20,800 --> 00:04:23,960 Speaker 4: forty one percent. It's the insurance company. This jumping the 90 00:04:24,000 --> 00:04:27,760 Speaker 4: most intra day since February after the company reported positive 91 00:04:27,760 --> 00:04:30,839 Speaker 4: adjusted EBA DAH in the first quarter. Wall Street expected 92 00:04:30,839 --> 00:04:34,840 Speaker 4: a loss. Those numbers coming ahead of the Bell and 93 00:04:35,000 --> 00:04:38,720 Speaker 4: the most actively traded stock in the entire index or 94 00:04:38,760 --> 00:04:42,440 Speaker 4: in the entire market today by far, Open Door Technology. 95 00:04:42,600 --> 00:04:45,599 Speaker 4: Oh yeah, surging again. Another eleven hours to hire today. 96 00:04:46,080 --> 00:04:48,359 Speaker 4: I know, did they report earnings or something. No, nothing 97 00:04:48,400 --> 00:04:51,239 Speaker 4: happened except we are speaking with Eric Jackson a VMJ 98 00:04:51,360 --> 00:04:54,640 Speaker 4: Capital a little later in our program. He's the well, 99 00:04:54,680 --> 00:04:56,599 Speaker 4: it's a small hedge fund that he has. He's the 100 00:04:56,640 --> 00:05:00,359 Speaker 4: only employee, and he's been all over social media with 101 00:05:00,480 --> 00:05:03,360 Speaker 4: this company and he's been able to I think it's 102 00:05:03,360 --> 00:05:06,960 Speaker 4: fair to say get the conversation started with retail investors 103 00:05:07,160 --> 00:05:10,240 Speaker 4: about where he thinks this company's going, and they've been responsive. 104 00:05:10,480 --> 00:05:12,839 Speaker 3: Sweet. Let me just jump in here because Zoom just 105 00:05:12,920 --> 00:05:16,440 Speaker 3: reported results. Zoom's second quarter just an EPs of a 106 00:05:16,480 --> 00:05:18,680 Speaker 3: dollar fifty three does top the consensu assessment of a 107 00:05:18,720 --> 00:05:21,480 Speaker 3: dollar thirty eight. Second quarter revenue one point two two 108 00:05:21,520 --> 00:05:24,000 Speaker 3: billion dollars, a slight beat on the expected one point 109 00:05:24,040 --> 00:05:26,760 Speaker 3: two billion. In terms of the outlook, it sees full 110 00:05:26,800 --> 00:05:29,080 Speaker 3: year revenue anywhere from four point eight three to four 111 00:05:29,080 --> 00:05:31,600 Speaker 3: point eight four billion. Previously it saw four point eight 112 00:05:31,640 --> 00:05:33,240 Speaker 3: to four point eight one billion, So that is an 113 00:05:33,320 --> 00:05:36,440 Speaker 3: upgrade in its outlook for the full year. In terms 114 00:05:36,440 --> 00:05:38,640 Speaker 3: of the full year operating income one point nine to 115 00:05:38,680 --> 00:05:41,080 Speaker 3: one billion to one point nine two billion, also an 116 00:05:41,120 --> 00:05:44,520 Speaker 3: upgrade from what it had previously anticipated. Full year free 117 00:05:44,520 --> 00:05:46,600 Speaker 3: cash flow will be at least one point seven to 118 00:05:46,640 --> 00:05:49,599 Speaker 3: four billion, whereas previously saw at most one point seven 119 00:05:49,680 --> 00:05:51,920 Speaker 3: two billion dollars. That's stock moving higher in the after 120 00:05:51,920 --> 00:05:53,360 Speaker 3: ours trade by four point four percent. 121 00:05:54,360 --> 00:05:56,080 Speaker 5: Well, listen at some of the stocks that are in 122 00:05:56,120 --> 00:05:58,240 Speaker 5: the red today. Of course, we know the market was 123 00:05:58,360 --> 00:06:00,880 Speaker 5: lower at the close here, but let's took a look 124 00:06:00,960 --> 00:06:03,479 Speaker 5: at Walmart shares. This is the second biggest decliner in 125 00:06:03,480 --> 00:06:05,440 Speaker 5: the S and P five hundred, and this is after 126 00:06:05,480 --> 00:06:09,279 Speaker 5: the retailer reported a profit that missed expectations for the 127 00:06:09,320 --> 00:06:12,680 Speaker 5: first time in three years. This did overshadow the higher 128 00:06:12,720 --> 00:06:14,520 Speaker 5: sales that it did report, and of course we know 129 00:06:14,560 --> 00:06:17,480 Speaker 5: we've gotten so much from a lot of these consumer 130 00:06:17,720 --> 00:06:20,280 Speaker 5: oriented companies and it does seem to be a bit 131 00:06:20,320 --> 00:06:22,640 Speaker 5: more of a dismal story right now. I mean, Morgan 132 00:06:22,680 --> 00:06:25,120 Speaker 5: Stanley analysts are saying that there's a lot of noise 133 00:06:25,160 --> 00:06:28,400 Speaker 5: and profitability specifically here for Walmart, and they expect the 134 00:06:28,520 --> 00:06:31,560 Speaker 5: underwhelming earnings won't be a long term risk to the stock. 135 00:06:31,640 --> 00:06:34,240 Speaker 5: So that is something, of course to note. We see 136 00:06:34,279 --> 00:06:36,960 Speaker 5: shares that are up about eight percent year to date here, 137 00:06:37,200 --> 00:06:38,880 Speaker 5: but I do also want to take a look at Cody, 138 00:06:39,000 --> 00:06:40,560 Speaker 5: and of course this is the owner of a lot 139 00:06:40,600 --> 00:06:42,640 Speaker 5: of the brands that we know, from Gucci to cover 140 00:06:42,720 --> 00:06:47,000 Speaker 5: Girl to Adidas. Calvin Klein shares are down twenty two 141 00:06:47,080 --> 00:06:49,799 Speaker 5: percent at the close today. That is the worst daily 142 00:06:49,839 --> 00:06:52,960 Speaker 5: performance that we've seen since COVID March twenty twenty here, 143 00:06:53,200 --> 00:06:57,040 Speaker 5: and this is after the company reported essentially forecasting steep 144 00:06:57,080 --> 00:07:01,600 Speaker 5: sales for sales declines. Their forecast was not clearly accepted 145 00:07:01,600 --> 00:07:04,799 Speaker 5: well by the market. Here they're talking about innovation fatigue 146 00:07:04,839 --> 00:07:09,159 Speaker 5: specifically with this cosmetics unit here. So lots of really 147 00:07:09,200 --> 00:07:11,280 Speaker 5: parts as we look at the earnings here, but I mean, 148 00:07:11,320 --> 00:07:13,200 Speaker 5: if you look on a broader scope, it's a pretty 149 00:07:13,200 --> 00:07:15,960 Speaker 5: brutal year here for the company. Shares are down forty 150 00:07:16,160 --> 00:07:19,120 Speaker 5: five percent year to date. But let's end things with 151 00:07:19,240 --> 00:07:21,880 Speaker 5: Cracker Barrel. Of course, we know this is a company. 152 00:07:21,520 --> 00:07:25,240 Speaker 1: That's been focus. Explain it to me because I'm very concis. 153 00:07:25,040 --> 00:07:28,280 Speaker 5: So much chatter online right, I mean, everyone's talking about 154 00:07:28,320 --> 00:07:31,240 Speaker 5: this company right now. We saw a slide in shares 155 00:07:31,280 --> 00:07:33,720 Speaker 5: today and that's after the company decided to change its logo. 156 00:07:33,880 --> 00:07:36,800 Speaker 5: So if you're familiar with the company, their logo has 157 00:07:36,800 --> 00:07:40,320 Speaker 5: always featured a man sitting on a one of those 158 00:07:40,320 --> 00:07:41,400 Speaker 5: little what do they call him a barrel? 159 00:07:41,600 --> 00:07:43,440 Speaker 3: He's a rocking chair, yeah, little rocking chair. 160 00:07:43,520 --> 00:07:46,440 Speaker 1: Moment shoulder were removing that now bo perch on and 161 00:07:46,480 --> 00:07:47,480 Speaker 1: that sent the stock down. 162 00:07:47,800 --> 00:07:50,200 Speaker 4: So we're moving on. People are really attached to this Logah, 163 00:07:50,280 --> 00:07:50,840 Speaker 4: I don't get it. 164 00:07:50,880 --> 00:07:54,200 Speaker 1: I'm not to be pedantic, but I mean this is 165 00:07:54,560 --> 00:07:57,720 Speaker 1: somehow become a political cultural war issue, and I honestly 166 00:07:57,760 --> 00:07:58,640 Speaker 1: do not understand it. 167 00:07:58,680 --> 00:07:59,280 Speaker 3: So explain it. 168 00:07:59,520 --> 00:08:01,480 Speaker 5: You have you guys in the Cracker Barrel, Yes, okay, 169 00:08:01,520 --> 00:08:03,880 Speaker 5: so you're familiar when you walk in. You know five. 170 00:08:04,280 --> 00:08:06,320 Speaker 1: Look, if you want to reminisce about the Antebellum South, 171 00:08:06,320 --> 00:08:07,040 Speaker 1: it's a great place to go. 172 00:08:09,400 --> 00:08:11,600 Speaker 5: We have a bunch of them back in Virginia, So 173 00:08:11,720 --> 00:08:14,559 Speaker 5: I'm definitely very familiar with the restaurant. But it seems 174 00:08:14,600 --> 00:08:17,240 Speaker 5: as though people are not really happy about this shift 175 00:08:17,240 --> 00:08:18,040 Speaker 5: that they're seeing here. 176 00:08:20,120 --> 00:08:24,160 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 177 00:08:24,240 --> 00:08:26,760 Speaker 2: us throughout the day for the latest roundup of companies 178 00:08:26,880 --> 00:08:29,960 Speaker 2: making news on Wall Street and for the latest market 179 00:08:30,000 --> 00:08:34,480 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 180 00:08:34,559 --> 00:08:38,080 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 181 00:08:38,120 --> 00:08:39,600 Speaker 2: the Bloomberg Business app.