WEBVTT - Closing Bell: Texas Instruments, GM & Lockheed Martin All Drop on Disappointing Results

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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 mover's 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, Romain Bostik, and Scarlet Foo.

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<v Speaker 3>S and P five hundred back to the big caps,

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<v Speaker 3>we go and man, do I have this right? Because

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<v Speaker 3>I feel like the split has been all over the place,

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<v Speaker 3>but we've We're ending with about four hundred and seven

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<v Speaker 3>names to the upside in the S and P five hundred,

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<v Speaker 3>KTI just ninety five to the downside. No, you're right,

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<v Speaker 3>that you right, It wasn't like that before.

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<v Speaker 4>We have really good breadth today, even though you wouldn't

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<v Speaker 4>necessarily know it by looking at the percent change on

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<v Speaker 4>the S and P five hundred. But when it comes

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<v Speaker 4>to the sector change that you had nine of eleven

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<v Speaker 4>sectors in the green, led by healthcare actually on a

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<v Speaker 4>points basis, but it was big tech on the downside.

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<v Speaker 5>Well, speak of big tech. We have a smaller big

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<v Speaker 5>company from the tech spas reporting Texas Instruments coming out

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<v Speaker 5>with second quarter EPs of a dollar forty one, beating

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<v Speaker 5>the consensussessimate of a dollar thirty five. Revenue for the

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<v Speaker 5>quarter was four point four to five billion dollars, also

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<v Speaker 5>higher than anticipated, which was four point three six billion.

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<v Speaker 5>As for the outlook, it sees revenue for this quarter

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<v Speaker 5>between four point four to five billion to four point

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<v Speaker 5>eight zero billion. Analysts, we're looking for four point five

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<v Speaker 5>seven billion, so the midpoint of that range handily beating

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<v Speaker 5>the consensus estimate. Third quarter EPs will be anywhere from

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<v Speaker 5>a dollar thirty six to a dollar sixty analysts, we're

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<v Speaker 5>looking for a dollar fifty and second quarter capex, now

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<v Speaker 5>I'm going backwards here was one point three one billion

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<v Speaker 5>dollars more than expected. Analysts. We're looking for one point

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<v Speaker 5>one seven billion, and you could see right now the

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<v Speaker 5>stock team down about seven percent in after our trading.

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<v Speaker 1>Yeah, there's no commentary from executives in the press release,

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<v Speaker 1>going to have to wait to get that from the

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<v Speaker 1>earnings call, but Worth reiterating that revenue increase nine percent

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<v Speaker 1>sequentially was led by continued brand recovery in industrial sixteen

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<v Speaker 1>percent from the same quarter a year ago. The company

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<v Speaker 1>also is saying that over the past twelve months, they've

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<v Speaker 1>invested three point nine billion dollars in R and D

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<v Speaker 1>and SGNA and invested four point nine billion dollars in

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<v Speaker 1>capex and returned to six point seven billion dollars to owners.

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<v Speaker 3>All Right, so just a reminder here, folks, you are

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<v Speaker 3>seeing a lot of selling and Texas Instruments in the

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<v Speaker 3>aftermarket down about a percent. There was some concern and

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<v Speaker 3>nervousness heading into this report because they felt like the outlook,

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<v Speaker 3>a lack of visibility and any obvious growth catalyst might

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<v Speaker 3>put some pressure on this name. But it's the street

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<v Speaker 3>not liking it, and you got to keep in mind

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<v Speaker 3>the stock it's up about fifteen percent year to date,

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<v Speaker 3>but definitely some disappointment here in the aftermarket, Katie.

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<v Speaker 4>Yeah, that outperformance might be a reason why you're seeing

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<v Speaker 4>this after hours reaction right now, which looks pretty dramatic,

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<v Speaker 4>Like you said, down eight percent. Now, of course, their

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<v Speaker 4>third quarter outlook didn't include changes to US tax legislation,

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<v Speaker 4>so maybe that explains some of the negativity here. But

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<v Speaker 4>we've been talking all program about how a lot of

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<v Speaker 4>these companies the bar is really high, at least when

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<v Speaker 4>it comes to sentiment, and these misses, if there's anything

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<v Speaker 4>to pick at, are getting punished.

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<v Speaker 3>Carol, Yeah, and I would say I just want to

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<v Speaker 3>throw one more thing in, and maybe the disappointment has

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<v Speaker 3>to do with the third quarter outlook. Right, it's seeing

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<v Speaker 3>third quarter EPs of of dollar thirty six to one sixty.

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<v Speaker 3>The estimate is one fifty. It sees third quarter revenue

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<v Speaker 3>from four point four to five billion to four point

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<v Speaker 3>eight billion. The estimate is four point five seven billion.

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<v Speaker 3>So there's a bit of a range and definitely some

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<v Speaker 3>room for disappointment. So maybe that has to do with

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<v Speaker 3>some of the selling that we're seeing here in the aftermarket.

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<v Speaker 3>We'll keep a watch on right now, Shares of Texas

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<v Speaker 3>Instruments still down about seven percent. Hey, just a quick

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<v Speaker 3>summary of some of the stocks that were on the

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<v Speaker 3>move in the regular session. We talked about home builders

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<v Speaker 3>outperformance there. Here's the reasons why d R Horton was

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<v Speaker 3>up about sixteen percent here at the close today, at

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<v Speaker 3>top gainer in the SNP. The third quarter earnings beat expectations,

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<v Speaker 3>profit orders and home closings beating analyst estimates. Go to

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<v Speaker 3>Polti Group also out with their results. That stock was

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<v Speaker 3>up twelve percent at the close, again a top gainer

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<v Speaker 3>in the SMP. They reported better than expected earnings, so

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<v Speaker 3>that was a big one, and we got some more

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<v Speaker 3>earnings crossing.

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<v Speaker 1>Yeah, looking at Intuitive Surgical, pulling it up on the

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<v Speaker 1>Bloomberg terminal, seeing shares in the after hours, not necessarily

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<v Speaker 1>on the move in termitie of Surgical. Second quarter revenue

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<v Speaker 1>coming in at two point four to four billion dollars.

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<v Speaker 1>Estimates were for two point three five at billion. Second

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<v Speaker 1>quarter adjusted earnings per share coming in a way above

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<v Speaker 1>estimates at two point two billion dollars. The estimate was

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<v Speaker 1>for one dollar and ninety three cent shares now on

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<v Speaker 1>the move higher by five point seven percent.

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<v Speaker 4>Yeah, starting to see some reaction there after a second

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<v Speaker 4>quarter adjusted EPs beat its estimates. And this is a

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<v Speaker 4>name that needed some good news to him. You consider

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<v Speaker 4>the fact that Intuitive Surgical shares were down about two

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<v Speaker 4>percent heading into today's close, and these numbers.

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<v Speaker 5>All right, we have most of the big banks done reporting,

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<v Speaker 5>but we have a financial company that has just reported

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<v Speaker 5>in that is Capital One. Let's give you the second

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<v Speaker 5>quarter just EPs number five dollars forty eight cents far

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<v Speaker 5>away beating the consensu assessment of three dollars eighty eight cents.

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<v Speaker 5>So maybe we're not comparing like with like. Let's look

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<v Speaker 5>at the net revenue line twelve point four to nine

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<v Speaker 5>billion dollars, also higher than the expected eleven point eight

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<v Speaker 5>four billion dollars. A net interest margin for the period

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<v Speaker 5>was seven point six two percent, better than the seven

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<v Speaker 5>point four to three percent. As for loans held for investment,

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<v Speaker 5>that came out to about four hundred and thirty nine

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<v Speaker 5>point three billion ounce. We're looking for about three hundred

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<v Speaker 5>and ninety seven billion and one comment from Capito one

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<v Speaker 5>the integration of Discover is going well, so we're looking

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<v Speaker 5>for more commentary, of course on that. Second quarter provision

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<v Speaker 5>for credit losses was about eleven point four to three

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<v Speaker 5>billion dollars. The consensus assessment, if this is the right comparison,

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<v Speaker 5>is three point eight eight billion. That seems a little

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<v Speaker 5>bit off, but we'll dig into that a little bit more.

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<v Speaker 5>The stock is now lower and after hours trading.

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<v Speaker 3>All right, here's one that is definitely rally in the aftermarket,

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<v Speaker 3>although it's having a pretty miserable twenty twenty five. We're

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<v Speaker 3>talking about in Phase Energy. It's up almost six percent

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<v Speaker 3>here in the aftermarket. Keep in mind it's off about

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<v Speaker 3>thirty seven percent year to date, the Solar Energy Company.

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<v Speaker 3>And let's go through some of the numbers second quarter,

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<v Speaker 3>just atdps, that's a beat six cents better than what

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<v Speaker 3>the street was expecting, sixty nine versus the estimate of

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<v Speaker 3>sixty three. Second quarter revenue that came in better than

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<v Speaker 3>forecasts three hundred and sixty three point two million. The

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<v Speaker 3>estimate was three hundred and fifty nine point three. And

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<v Speaker 3>then this is what matters. Perhaps the third quarter revenue

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<v Speaker 3>outlook three hundred thirty million to three hundred and seventy million,

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<v Speaker 3>that's quade a app The estimate is for three hundred

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<v Speaker 3>and seventy one point nine million. But again, this stock

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<v Speaker 3>Katie is up about eight percent in the aftermarket.

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<v Speaker 4>Yeah, it's wild. Well, you mentioned that it's having a

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<v Speaker 4>miserable twenty twenty five, so just put some context to that.

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<v Speaker 4>Shares down about thirty eight percent on a total return

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<v Speaker 4>basis into the close. We know that in Phase and

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<v Speaker 4>some of the other clean energy, some of the other

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<v Speaker 4>solar names have been really whipsawed by policy coming out

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<v Speaker 4>of the White House. So I guess the fact that

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<v Speaker 4>they were able to report good news on any level.

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<v Speaker 4>You can see the shares really taking off after hours.

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<v Speaker 1>Yes, you know, whipsawng. I'm watching shares of Intuitive Surgical.

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<v Speaker 1>At first they did move higher, now they're down four

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<v Speaker 1>and a half percent. In the after hours, the company

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<v Speaker 1>did say, remember this is the company that has the

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<v Speaker 1>Da Vinci surgical robot. It's the high precision robot that

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<v Speaker 1>does surgery on many different parts of the human body.

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<v Speaker 1>They did say that procedures grew at approximately seventeen percent

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<v Speaker 1>in the second quarter of twenty twenty four, and now

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<v Speaker 1>they grew their Da Vinci Surgical system installed based to

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<v Speaker 1>ten thousand, four hundred and eighty eight systems as of

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<v Speaker 1>the end of the quarter in June twenty twenty five.

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<v Speaker 1>That's an increase of fourteen percent compared to June thirtieth,

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<v Speaker 1>twenty twenty five.

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<v Speaker 3>And just real quickly, analog devices and on semi both

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<v Speaker 3>down in sympathy. I guess with Texas Instruments who we're

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<v Speaker 3>seeing some impact on some of the other chip names.

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