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 Stenovak, Romain Bostic and Scarlet Food.
Speaker 3: Let's go back though to the S and P five hundred.
Speaker 3: I mentioned most names in the index hired today, three
Speaker 3: hundred and thirty seven to the upside, remain one hundred
Speaker 3: and sixty five to the downside, one unchanged.
Speaker 1: And of course, so we talk about sort of what
Speaker 1: led that charge. It was energy, it was financials, it
Speaker 1: was industrials, it was consumer discretionary, all posting pretty sizeable
Speaker 1: gains here on the day, but the big laggards on
Speaker 1: the day. You saw that in communications services, which is
Speaker 1: largely a lot of the companies like your metas if
Speaker 1: you will. You saw that in utilities, and you saw
Speaker 1: that in the SMP Infotech index, which includes all the biggies.
Speaker 1: All those biggies here down as a group by roughly
Speaker 1: about four tenths of once percent. Now, speaking of the
Speaker 1: Big East, Carol, we are getting some earnings right now,
Speaker 1: a lot of.
Speaker 3: Salesforce, Yeah, we are. And d So let's go through
Speaker 3: the numbers, folks. Let's go right to the forecast. Salesforce
Speaker 3: seeing fourth quarter revenue eleven point thirteen billion to eleven
Speaker 3: point twenty three billion, and folks, that is easily above
Speaker 3: the street estimate, and that's probably why you're seeing the
Speaker 3: stock up about six percent here in the aftermarket. Ten
Speaker 3: point nine to one billion is the estimate. Let me
Speaker 3: go back to the third quarter. Third quarter just to DPS,
Speaker 3: that was a big beat, three dollars twenty five cents
Speaker 3: a share versus the estimate of two to eighty six
Speaker 3: a share. Also, if I take a look at third
Speaker 3: quarter revenue, that was pretty much in line ten point
Speaker 3: twenty six billion versus an estimate of twenty of ten
Speaker 3: point twenty eight billion. But again all right, so pulling
Speaker 3: back a little bit on the games, but remains still
Speaker 3: up about four point seven percent, So investors liking what
Speaker 3: they got in terms of that forecast.
Speaker 1: And I just want to stay on Salesforce for just
Speaker 1: one second, because there was some concern you guys coming
Speaker 1: into this morning with that report from the Information about
Speaker 1: apparently Microsoft's salespeople had missed and at least in the first
Speaker 1: half of the year, some of the AI sales targets
Speaker 1: that actually led to a downdraft in both Microsoft and
Speaker 1: the broader market. Microsoft pushed back on that and we
Speaker 1: saw a big bump up. So there are a lot
Speaker 1: of concerns about what we would hear out of Salesforce.
Speaker 1: This also comes in a day where we heard from
Speaker 1: the anthropic CEO at a New York Times event saying
Speaker 1: that he thought some of the spending on AI had
Speaker 1: maybe gotten a little bit too risky, and some reports
Speaker 1: out of that Morgan Stanley was actually looking to do
Speaker 1: a strategic risk transfer and some of the loans tied
Speaker 1: to that data center build out.
Speaker 4: Yeah, just back to Salesforce and staying on sales source.
Speaker 4: Up eight point three percent in the after hours. Revenue
Speaker 4: for the fourth quarter. The guidance beat the average analyst
Speaker 4: estimate fourth quarter forecasts. He's revenue eleven point one three
Speaker 4: to eleven point two to three billion. That's ahead of
Speaker 4: estimates of ten point nine to one billion dollars. The
Speaker 4: estimate for adjusted EPs was for three dollars and three cents.
Speaker 4: That coming for three dollars and two to three dollars
Speaker 4: and four so right in line with estimates. The company
Speaker 4: sees the current remaining performance obligation at fifteen percent.
Speaker 1: Yeah, we're going to dive deeper into this, but yeah,
Speaker 1: on the surface, these numbers look pretty good. It'll be
Speaker 1: interesting to see what the Mark Benioff and as our
Speaker 1: team has to say on the call. Here the idea
Speaker 1: of AI adoption and of course a company and salesforce
Speaker 1: that has really bet the farm on it going forward. Meanwhile,
Speaker 1: we are getting some other earnings this out of the
Speaker 1: retail space five below. The retailer out with its earnings,
Speaker 1: and it does look to be a beaten a raised quarter.
Speaker 1: The shares had a decent little pop just a few
Speaker 1: minutes ago. Pairing some of those gains. The company is
Speaker 1: saying that in the most recent quarter, net sales did
Speaker 1: come in up about twenty three percent at about one billion.
Speaker 1: Even that's above the average of analyssessments. The company guiding
Speaker 1: for the next quarter. For the current quarter, the fourth
Speaker 1: quarter right now, seeing a guidance of net sales in
Speaker 1: the range of one point five eight to one point
Speaker 1: six to one billion. The low end of that range
Speaker 1: is above the average of street estimates. Similar story, Carol,
Speaker 1: when it comes to the EPs a range with the
Speaker 1: low end of that range higher than the average Street.
Speaker 3: Estimer so important in terms of what it's telling us
Speaker 3: about the US economy, the consumer they retail. I want
Speaker 3: to go back though, to Salesforce if I may. We've
Speaker 3: got a great right through on the Bloomberg by our
Speaker 3: Dana Bass and Brody Ford. Again, the company giving an
Speaker 3: outlook for revenue in the current period that top dalyst estimates,
Speaker 3: suggesting the software companies persuading customers to its AI tools.
Speaker 3: The company's AI tool, it's called Agent Force, has closed
Speaker 3: more than ninety five hundred paid deal since its launch,
Speaker 3: with an annual recurring revenue for the division that includes
Speaker 3: AI focused tools being one point four billion in the
Speaker 3: period ending October thirty first. So again that AI trade
Speaker 3: remain mentioned like some concerns maybe heading into these earnings,
Speaker 3: but it looks like Salesforce is definitely delivering.
Speaker 4: Tem Yeah, Mark Benioff, calling out that ninety five hundred
Speaker 4: page Agent Force deals. He also says three point two
Speaker 4: trillion tokens process some other numbers that he highlights in
Speaker 4: the press release, and of course we'll get more potentially
Speaker 4: on the earnings call. Raising the fiscal year twenty twenty
Speaker 4: six guidance signaling a powerful pipeline of future revenue Agent
Speaker 4: Force and Data three sixty products. They're momentum drivers, hitting
Speaker 4: nearly one point four billion dollars in annual recurring revenue.
Speaker 1: Yeah, we should point out, I mean, coming into this
Speaker 1: session actually one of the worst performers in the Dow
Speaker 1: Jones Industrial average on a year to date basis, and
Speaker 1: that caused some concern here. But at least the customer
Speaker 1: relations software company looks to get its mojo back. Meanwhile,
Speaker 1: we want to take a look at some of the
Speaker 1: database architecture companies, and that includes Snowflake. It's just out
Speaker 1: with this results right now. Those shares actually moving lower,
Speaker 1: down about five percent here in the after hours trade.
Speaker 1: Here's what the company has to say with regards to
Speaker 1: the most recent quarter. It basically says that in the
Speaker 1: most recent quarter, revenue did come in in line with
Speaker 1: estimates at about one point one six billion EPs at
Speaker 1: thirty five cents. That's about four cents higher than what
Speaker 1: the street was looking for. For the fourth quarter. The
Speaker 1: company says though the product revenue will be in a
Speaker 1: range of one point two well, there is no range.
Speaker 1: It will be one point two billion, and that's basically
Speaker 1: on the nose of what the street was looking for.
Speaker 1: How the company also says full your product revenue four
Speaker 1: point four to five. That's slightly higher than what the
Speaker 1: forecasts before, but only a made higher than what the
Speaker 1: street was looking for. And maybe that's why you're seeing
Speaker 1: some softness in the shares.
Speaker 4: I'm looking at another company reporting after hours. Ai US
Speaker 4: is the ticker C three AI. It's the application enterprise
Speaker 4: software company. Shares bouncing around in the after hours, but
Speaker 4: down two point eight percent in terms of the numbers.
Speaker 4: C three AI second quarter adjusted loss per share of
Speaker 4: twenty five cents that came in ahead of estimates at
Speaker 4: thirty three cents. The company sees fiscal year revenue two
Speaker 4: hundred and eighty nine point five to three hundred and
Speaker 4: nine and a half million. That's very much below what
Speaker 4: it saw earlier, which was four hundred and forty seven
Speaker 4: million to four hundred and eighty four point five million.
Speaker 4: Second quarter revenue came in above estimates at seventy five
Speaker 4: point one million dollars once again, and now actually the
Speaker 4: company sees the third quarter revenue seventy two to eighty million.
Speaker 4: The customers for seventy five point six million dollars shares
Speaker 4: in the after hours, down about one point four percent.
Speaker 3: All right, so seeing a lot from certainly the tech community.
Speaker 3: I want to go back to the retail community. Five
Speaker 3: below remain breaking it down earlier. I mean, this is
Speaker 3: a stock that's up almost sixty percent year to date.
Speaker 3: The stock now up about one and a half percent
Speaker 3: in the aftermarket, so it's been bouncing around a little bit.
Speaker 3: Going to the outlook, the company seeing fiscal year EPs
Speaker 3: of five point fifty one five dollars fifty one cents
Speaker 3: to five point sixty nine. It had seen four fifty
Speaker 3: six to four ninety six. The estimate was below five dollars,
Speaker 3: So it looks like investors certainly feeding into that one
Speaker 3: and liking it remains.
Speaker 1: And this raised a lot of questions. I mean, we're
Speaker 1: basically through the earning season. I mean, this is it.
Speaker 1: We get a few tomorrow like Dollar General and Hormel,
Speaker 1: and I think Docu sign and HPE Ultra Beauty as well,
Speaker 1: but we've kind of got to read now on what's
Speaker 1: going on with business spending, what's going on with consumer spending.
Speaker 1: The quarters over and it looks like overall it did
Speaker 1: better than what most.
Speaker 3: People had thought, Yeah, I think you're right, but I
Speaker 3: have to say when it comes to retail I like
Speaker 3: you guys. We've done a lot of interviews on that,
Speaker 3: and it just feels like everybody talking about the consumer yep,
Speaker 3: spending but being cautious. So anything that puts any more
Speaker 3: additional pressure on a consumer, I think we could see
Speaker 3: some problems. And we'll see whether or not they get
Speaker 3: an assist perhaps from the FED in lower rates and
Speaker 3: how that can trickle through certainly the economy.
Speaker 4: Yeah, just a reminder, like the big picture that we've
Speaker 4: gotten from these retailers has been this bifurcated consumer where
Speaker 4: the high end consumer is still spending and even the
Speaker 4: middle income consumers trading down. And look at what we
Speaker 4: saw from some of the dollar stores.
Speaker 1: All right.
Speaker 3: As a result, five below up about two percent. You've
Speaker 3: got salesforce guys up about four and a half percent.
Speaker 3: Snowflake right now down about six and a half percent.
Speaker 3: So watching all of this here in the aftermarket.
Speaker 2: That is a wrap this Stock Movers report from Bloomberg Radio.
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Speaker 2: roundup of companies making news on Wall Street and for
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