WEBVTT - Closing Bell Earnings Special: Autodesk, Workday, Ulta Beauty

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<v Speaker 1>Bloomberg Audio Studios.

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<v Speaker 2>Podcasts.

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<v Speaker 1>Radio. News.

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<v Speaker 2>This is the Closing Bell on the Stock Movers Report.

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<v Speaker 2>The companies making moves at the close of U.S. trading

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<v Speaker 2>with Carol Masser, Tim Stenevek, Romain Bostic, and Katie Greifeld.

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<v Speaker 3>Let's actually go to Autodesk first. Autodesk crossing the wire.

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<v Speaker 3>The knee-jerk reaction for the software maker down about 2% here.

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<v Speaker 3>Adjusted EPS did rise to about $ 3. 30 year-over-year from $ 2. 62

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<v Speaker 3>the previous year. Net revenue in the quarter about in

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<v Speaker 3>line with estimates at about $ 2. 05 billion. The street was

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<v Speaker 3>looking for $ 2.

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<v Speaker 4>01.

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<v Speaker 3>Billings in the quarter also slightly above estimates at about

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<v Speaker 3>$ 1. 85 billion. The street overall was looking for $ 1.

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<v Speaker 1>81.

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<v Speaker 3>Here's your forecast. Tim, Autodesk saying that revenue for the

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<v Speaker 3>current quarter will be in a range of $ 2. 13 to

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<v Speaker 3>$ 2. 14 billion. The street was looking for $ 2.

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<v Speaker 1>08. Okay, that's Autodesk. I'm looking at what's going on

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<v Speaker 1>with Workday right now. A lot of eyes on this

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<v Speaker 1>company after what happened today and yesterday with shares of Salesforce.

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<v Speaker 1>Workday second quarter revenue does meet estimates. Shares in the

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<v Speaker 1>after hours up two-tenths of one percent. The company sees

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<v Speaker 1>fiscal year subscription revenue coming between $ 9. 94 billion to $ 9. 95 billion.

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<v Speaker 1>The estimate was for $ 9. 95 billion. So pretty much in

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<v Speaker 1>line there. The company sees fiscal year adjusted operating margin

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<v Speaker 1>at 31%. It saw about 30.5%. And the estimate was

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<v Speaker 1>for 34.5%. Second quarter revenue coming in above estimates ever

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<v Speaker 1>so slightly at $ 2. 65 billion. And the company sees third

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<v Speaker 1>quarter subscription revenue at $ 2. 52 billion. Shares of Workday down

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<v Speaker 1>about 1.2%. Remember, there was that interest or reported interest

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<v Speaker 1>earlier this year from Silver Lake that caused shares to

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<v Speaker 1>move higher.

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<v Speaker 3>Absolutely here. And of course, not all software companies are

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<v Speaker 3>treated equal. We talk about the big gainers on the day,

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<v Speaker 3>Tim and Lisa, and one of them was a software name.

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<v Speaker 3>And I think where a lot of folks are wondering

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<v Speaker 3>whether we can take sort of what was out of

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<v Speaker 3>Salesforce and maybe extrapolate into what we would hear from

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<v Speaker 3>Workday and Autodesk. But obviously, every software company has a

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<v Speaker 3>little bit of a different take here on how they

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<v Speaker 3>fit into the AI story.

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<v Speaker 1>Yeah, we had a great conversation with Brody about this earlier.

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<v Speaker 1>I mean, we were told there was going to be

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<v Speaker 1>a SaaSpocalypse, right? And even though a gain like today

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<v Speaker 1>we're seeing with Salesforce, with the stock up the most

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<v Speaker 1>going back six years, it's still down around 5% on

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<v Speaker 1>the year. So it speaks to the challenges that I

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<v Speaker 1>think some investors in the public markets still have when

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<v Speaker 1>it comes to the effect of these AI companies on

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<v Speaker 1>some of these cloud providers.

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<v Speaker 3>Yeah, well, I get it. Yeah. And it's this idea, though, too.

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<v Speaker 3>It's like, OK, well, if you're just sort of a

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<v Speaker 3>generalist in this space, maybe AI does eat your lunch

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<v Speaker 3>if you're more entrenched, which is sort of the argument

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<v Speaker 3>of Mark Benioff at Salesforce would make that the one

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<v Speaker 3>you're more entrenched into some of these enterprise projects. to

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<v Speaker 3>some of these big corporations and their enterprises, then maybe

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<v Speaker 3>the AI story isn't as much of a threat. But

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<v Speaker 3>as you said, the jury's still out. Yeah, there's been

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<v Speaker 3>a big rally in these names today and over the

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<v Speaker 3>last two weeks, but all of these names are in

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<v Speaker 3>the red.

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<v Speaker 1>It doesn't hurt to have Dario Amadei join you side

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<v Speaker 1>by side to talk about a partnership between Anthropic. Oh, absolutely.

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<v Speaker 1>What some people say is like, okay, the company that

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<v Speaker 1>is the biggest threat to these SaaS companies.

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<v Speaker 2>Yeah.

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<v Speaker 1>Yeah, that doesn't hurt.

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<v Speaker 3>Trust me, when I have my annual review, I'm going

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<v Speaker 3>to see if Dario can join me.

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<v Speaker 4>Yeah.

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<v Speaker 1>Maybe you might have to settle for Claude. Bad news.

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<v Speaker 3>Okay.

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<v Speaker 2>Who knows?

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<v Speaker 4>That's really the question, though, for these software companies. Like,

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<v Speaker 4>can they stay resilient in the age of AI? Do

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<v Speaker 4>they create their own AI product or do they choose

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<v Speaker 4>to partner with other companies, at least for Workday? The

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<v Speaker 4>CFO saying in the results, our results reflect continued momentum

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<v Speaker 4>across the platform. AI emerging as a strategic driver of

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<v Speaker 4>customer expansion is look, it's not much to lift the

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<v Speaker 4>shares right now. The stock down about 4% now in

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<v Speaker 4>the after hours.

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<v Speaker 1>Two questions also about what these companies are doing with cash.

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<v Speaker 1>The company authorizing an additional $ 4 billion in share buybacks.

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<v Speaker 1>That's Workday. Shares down in the after hours still by 4.3%.

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<v Speaker 1>Once again, fiscal year adjusted operating margin. The company sees

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<v Speaker 1>fiscal year adjusted operating margin coming in at 31%. That's

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<v Speaker 1>an increase of what it saw earlier, which was 30.5%.

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<v Speaker 1>Like you said, though.

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<v Speaker 1>With that narrowing of its fiscal year subscription revenue forecast,

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<v Speaker 1>not doing much for shares in the after hours.

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<v Speaker 3>All right, now let's move on to the chip space

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<v Speaker 3>here and away from the software space for a second.

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<v Speaker 3>Marvell's earnings crossing the wire right now. Second quarter revenue

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<v Speaker 3>does beat slightly, $ 2. 74 billion. The street was looking for

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<v Speaker 3>$ 2. 71 on average. Adjusted EPS, $ 0. 94 a share. That's about

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<v Speaker 3>a penny above the average of street estimates. Take a

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<v Speaker 3>while here to dig in to try to find the forecast,

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<v Speaker 3>but overall... The company is saying, at least on the surface,

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<v Speaker 3>that it is expecting gross margins of roughly about 58 percent,

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<v Speaker 3>which is around what the street was looking for here.

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<v Speaker 3>So no real material up in that margin guidance.

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<v Speaker 1>Okay, this is Marvell Technology. Shares down about 1.5% in

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<v Speaker 1>the after hours. These earnings, they continue to come. Looking

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<v Speaker 1>at shares of Ulta Beauty right now and looking at headlines,

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<v Speaker 1>the company sees fiscal year earnings per share coming in

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<v Speaker 1>at $ 28.

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<v Speaker 2>70 to $ 29.

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<v Speaker 1>It saw $ 28. 36 to $ 28. 80. The company sees fiscal year

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<v Speaker 1>comp sales increasing 3.2% to 3.7%. That's an increase from

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<v Speaker 1>what it earlier saw, which was 2.5% to 3.5%. Shares

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<v Speaker 1>of Ulta Beauty in the after hours up about 2.8%.

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<v Speaker 1>Looking backwards, the company's second quarter earnings per share coming

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<v Speaker 1>in above estimates at $ 6. 55. And second quarter comp sales

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<v Speaker 1>coming in way above estimates at 3.8%. The estimate was

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<v Speaker 1>for 2.44%. Ulta shares higher by about 2.8%.

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<v Speaker 3>And it raises a lot of questions about this idea

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<v Speaker 3>of where consumer spending stands. I mean, you think about

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<v Speaker 3>just how much of a mixed picture it's been out

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<v Speaker 3>of a lot of these consumer-facing and retail companies. You

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<v Speaker 3>have some companies reporting great growth, others still struggling. I

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<v Speaker 3>thought it was interesting when we had last week, we

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<v Speaker 3>were talking on the program about Walmart and the idea

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<v Speaker 3>that a company that actually raised its guidance still got

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<v Speaker 3>hit in the market, primarily because of that seemingly potentially

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<v Speaker 3>slowdown in some of that sequential same-store sales growth.

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<v Speaker 4>Yeah, and you think about where the consumer is, it's

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<v Speaker 4>really a mixed bag remain. Like you said, we just

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<v Speaker 4>had Abercrombie Earnings the other day, that stock blowing it

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<v Speaker 4>out of the water. Ulta Beauty, another consumer-focused name. Look,

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<v Speaker 4>the read right now, at least from the second quarter,

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<v Speaker 4>is positive, a positive read on the consumer. We do

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<v Speaker 4>still have to see that forecast, though.

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<v Speaker 3>But did you guys see the results we got this

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<v Speaker 3>morning out of Dollar General and Dollar Tree and this

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<v Speaker 3>idea sort of like how you have two companies kind

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<v Speaker 3>of in the same space kind of moving? in different

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<v Speaker 3>directions for different reasons. And it gets to this idea.

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<v Speaker 3>I mean, we're beyond K-shaped or whatever people are doing

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<v Speaker 3>trying to describe this economy. I think we just have

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<v Speaker 3>to kind of come up with a new letter or

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<v Speaker 3>shape to sort of characterize it.

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<v Speaker 1>Oh, the Treasury Secretary would like to see a C, right?

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<v Speaker 2>Yeah.

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<v Speaker 1>He calls it C-shaped.

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<v Speaker 3>The Treasury Secretary. What's he up to these days? We

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<v Speaker 3>haven't heard from him in a couple of days.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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