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Speaker 2: This is the Closing Bell on the Stock Movers Report.
Speaker 2: The companies making moves at the close of U.S. trading
Speaker 2: with Carol Masser, Tim Stenevek, Romain Bostic, and Katie Greifeld.
Speaker 3: Let's actually go to Autodesk first. Autodesk crossing the wire.
Speaker 3: The knee-jerk reaction for the software maker down about 2% here.
Speaker 3: Adjusted EPS did rise to about $ 3. 30 year-over-year from $ 2. 62
Speaker 3: the previous year. Net revenue in the quarter about in
Speaker 3: line with estimates at about $ 2. 05 billion. The street was
Speaker 3: looking for $ 2.
Speaker 4: 01.
Speaker 3: Billings in the quarter also slightly above estimates at about
Speaker 3: $ 1. 85 billion. The street overall was looking for $ 1.
Speaker 1: 81.
Speaker 3: Here's your forecast. Tim, Autodesk saying that revenue for the
Speaker 3: current quarter will be in a range of $ 2. 13 to
Speaker 3: $ 2. 14 billion. The street was looking for $ 2.
Speaker 1: 08. Okay, that's Autodesk. I'm looking at what's going on
Speaker 1: with Workday right now. A lot of eyes on this
Speaker 1: company after what happened today and yesterday with shares of Salesforce.
Speaker 1: Workday second quarter revenue does meet estimates. Shares in the
Speaker 1: after hours up two-tenths of one percent. The company sees
Speaker 1: fiscal year subscription revenue coming between $ 9. 94 billion to $ 9. 95 billion.
Speaker 1: The estimate was for $ 9. 95 billion. So pretty much in
Speaker 1: line there. The company sees fiscal year adjusted operating margin
Speaker 1: at 31%. It saw about 30.5%. And the estimate was
Speaker 1: for 34.5%. Second quarter revenue coming in above estimates ever
Speaker 1: so slightly at $ 2. 65 billion. And the company sees third
Speaker 1: quarter subscription revenue at $ 2. 52 billion. Shares of Workday down
Speaker 1: about 1.2%. Remember, there was that interest or reported interest
Speaker 1: earlier this year from Silver Lake that caused shares to
Speaker 1: move higher.
Speaker 3: Absolutely here. And of course, not all software companies are
Speaker 3: treated equal. We talk about the big gainers on the day,
Speaker 3: Tim and Lisa, and one of them was a software name.
Speaker 3: And I think where a lot of folks are wondering
Speaker 3: whether we can take sort of what was out of
Speaker 3: Salesforce and maybe extrapolate into what we would hear from
Speaker 3: Workday and Autodesk. But obviously, every software company has a
Speaker 3: little bit of a different take here on how they
Speaker 3: fit into the AI story.
Speaker 1: Yeah, we had a great conversation with Brody about this earlier.
Speaker 1: I mean, we were told there was going to be
Speaker 1: a SaaSpocalypse, right? And even though a gain like today
Speaker 1: we're seeing with Salesforce, with the stock up the most
Speaker 1: going back six years, it's still down around 5% on
Speaker 1: the year. So it speaks to the challenges that I
Speaker 1: think some investors in the public markets still have when
Speaker 1: it comes to the effect of these AI companies on
Speaker 1: some of these cloud providers.
Speaker 3: Yeah, well, I get it. Yeah. And it's this idea, though, too.
Speaker 3: It's like, OK, well, if you're just sort of a
Speaker 3: generalist in this space, maybe AI does eat your lunch
Speaker 3: if you're more entrenched, which is sort of the argument
Speaker 3: of Mark Benioff at Salesforce would make that the one
Speaker 3: you're more entrenched into some of these enterprise projects. to
Speaker 3: some of these big corporations and their enterprises, then maybe
Speaker 3: the AI story isn't as much of a threat. But
Speaker 3: as you said, the jury's still out. Yeah, there's been
Speaker 3: a big rally in these names today and over the
Speaker 3: last two weeks, but all of these names are in
Speaker 3: the red.
Speaker 1: It doesn't hurt to have Dario Amadei join you side
Speaker 1: by side to talk about a partnership between Anthropic. Oh, absolutely.
Speaker 1: What some people say is like, okay, the company that
Speaker 1: is the biggest threat to these SaaS companies.
Speaker 2: Yeah.
Speaker 1: Yeah, that doesn't hurt.
Speaker 3: Trust me, when I have my annual review, I'm going
Speaker 3: to see if Dario can join me.
Speaker 4: Yeah.
Speaker 1: Maybe you might have to settle for Claude. Bad news.
Speaker 3: Okay.
Speaker 2: Who knows?
Speaker 4: That's really the question, though, for these software companies. Like,
Speaker 4: can they stay resilient in the age of AI? Do
Speaker 4: they create their own AI product or do they choose
Speaker 4: to partner with other companies, at least for Workday? The
Speaker 4: CFO saying in the results, our results reflect continued momentum
Speaker 4: across the platform. AI emerging as a strategic driver of
Speaker 4: customer expansion is look, it's not much to lift the
Speaker 4: shares right now. The stock down about 4% now in
Speaker 4: the after hours.
Speaker 1: Two questions also about what these companies are doing with cash.
Speaker 1: The company authorizing an additional $ 4 billion in share buybacks.
Speaker 1: That's Workday. Shares down in the after hours still by 4.3%.
Speaker 1: Once again, fiscal year adjusted operating margin. The company sees
Speaker 1: fiscal year adjusted operating margin coming in at 31%. That's
Speaker 1: an increase of what it saw earlier, which was 30.5%.
Speaker 1: Like you said, though.
Speaker 1: With that narrowing of its fiscal year subscription revenue forecast,
Speaker 1: not doing much for shares in the after hours.
Speaker 3: All right, now let's move on to the chip space
Speaker 3: here and away from the software space for a second.
Speaker 3: Marvell's earnings crossing the wire right now. Second quarter revenue
Speaker 3: does beat slightly, $ 2. 74 billion. The street was looking for
Speaker 3: $ 2. 71 on average. Adjusted EPS, $ 0. 94 a share. That's about
Speaker 3: a penny above the average of street estimates. Take a
Speaker 3: while here to dig in to try to find the forecast,
Speaker 3: but overall... The company is saying, at least on the surface,
Speaker 3: that it is expecting gross margins of roughly about 58 percent,
Speaker 3: which is around what the street was looking for here.
Speaker 3: So no real material up in that margin guidance.
Speaker 1: Okay, this is Marvell Technology. Shares down about 1.5% in
Speaker 1: the after hours. These earnings, they continue to come. Looking
Speaker 1: at shares of Ulta Beauty right now and looking at headlines,
Speaker 1: the company sees fiscal year earnings per share coming in
Speaker 1: at $ 28.
Speaker 2: 70 to $ 29.
Speaker 1: It saw $ 28. 36 to $ 28. 80. The company sees fiscal year
Speaker 1: comp sales increasing 3.2% to 3.7%. That's an increase from
Speaker 1: what it earlier saw, which was 2.5% to 3.5%. Shares
Speaker 1: of Ulta Beauty in the after hours up about 2.8%.
Speaker 1: Looking backwards, the company's second quarter earnings per share coming
Speaker 1: in above estimates at $ 6. 55. And second quarter comp sales
Speaker 1: coming in way above estimates at 3.8%. The estimate was
Speaker 1: for 2.44%. Ulta shares higher by about 2.8%.
Speaker 3: And it raises a lot of questions about this idea
Speaker 3: of where consumer spending stands. I mean, you think about
Speaker 3: just how much of a mixed picture it's been out
Speaker 3: of a lot of these consumer-facing and retail companies. You
Speaker 3: have some companies reporting great growth, others still struggling. I
Speaker 3: thought it was interesting when we had last week, we
Speaker 3: were talking on the program about Walmart and the idea
Speaker 3: that a company that actually raised its guidance still got
Speaker 3: hit in the market, primarily because of that seemingly potentially
Speaker 3: slowdown in some of that sequential same-store sales growth.
Speaker 4: Yeah, and you think about where the consumer is, it's
Speaker 4: really a mixed bag remain. Like you said, we just
Speaker 4: had Abercrombie Earnings the other day, that stock blowing it
Speaker 4: out of the water. Ulta Beauty, another consumer-focused name. Look,
Speaker 4: the read right now, at least from the second quarter,
Speaker 4: is positive, a positive read on the consumer. We do
Speaker 4: still have to see that forecast, though.
Speaker 3: But did you guys see the results we got this
Speaker 3: morning out of Dollar General and Dollar Tree and this
Speaker 3: idea sort of like how you have two companies kind
Speaker 3: of in the same space kind of moving? in different
Speaker 3: directions for different reasons. And it gets to this idea.
Speaker 3: I mean, we're beyond K-shaped or whatever people are doing
Speaker 3: trying to describe this economy. I think we just have
Speaker 3: to kind of come up with a new letter or
Speaker 3: shape to sort of characterize it.
Speaker 1: Oh, the Treasury Secretary would like to see a C, right?
Speaker 2: Yeah.
Speaker 1: He calls it C-shaped.
Speaker 3: The Treasury Secretary. What's he up to these days? We
Speaker 3: haven't heard from him in a couple of days.
Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with
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Speaker 2: making news on Wall Street. And for the latest market-moving headlines,
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