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 Stenebeck, Romain Bostik, and Katie Greifel.
Speaker 3: Let's get to some of the individual gainers as we
Speaker 3: await earnings, and I'm going to start with Armholding Chips,
Speaker 3: though certainly have been on our mind. Armholdings, though you
Speaker 3: saw that one gain as much as eight and a
Speaker 3: half percent intra day at its high.
Speaker 1: I've got to interrupt you now here, Carol, my apologies.
Speaker 1: Here Intel earnings crossing the wire right now, Let's go
Speaker 1: straight to the revenue forecast for the first quarter. The
Speaker 1: company says adjusted EPs will be zero. The street was
Speaker 1: looking for eight cents a share. As for the revenue side,
Speaker 1: the company says revenue for the first quarter, the quarter
Speaker 1: that we're in right now, eleven point seven to twelve
Speaker 1: point seven billion dollars. The street was looking on average
Speaker 1: for twelve points six billion dollars. So the top end
Speaker 1: of that range is right around what the street was
Speaker 1: looking for, but of course it's a wide range of
Speaker 1: about a billion dollars. Here that might be why you're
Speaker 1: seeing some softness in the shares. As for the quarter
Speaker 1: that just passed, the fourth quarter revenue did beat thirteen
Speaker 1: point sixty seven billion, Adjusted operating margin did beat eight
Speaker 1: point eight percent. Adjusted EPs also beat at fifteen cents
Speaker 1: a share. The street was looking guys for eight point seven.
Speaker 4: Yeah, that's the thing. You can see. Shore is actually
Speaker 4: pairing their decline right now, down about one point three percent.
Speaker 4: But it's vaudal out there. I mean, Romain makes a
Speaker 4: good point that they'll look back when it comes to
Speaker 4: the fourth quarter. They actually beat there when it comes
Speaker 4: to the adjusted EPs, but certainly that first quarter outlook
Speaker 4: tim is going to be disappointing for a stock that,
Speaker 4: as Carol said, has had quite the run up.
Speaker 5: Yeah, down four percent in the after hours, I'm going
Speaker 5: through the press release and looking at commentary from Intel
Speaker 5: CEO Lit Bhutan, who says our conviction in the central
Speaker 5: role of cpo's CPUs in the AI era continues to grow.
Speaker 5: He continues to say, our priorities are clear, sharpenexcution, reinvigorate
Speaker 5: engineering excellence, and fully capitalize on the vast opportunity AI
Speaker 5: presents across all of our businesses. Intel shares in the
Speaker 5: after hours bouncing around a little bit, but down about
Speaker 5: four point eight percent.
Speaker 3: Just going to layer some commentary from the CFO Dave's
Speaker 3: Instner also on Intel, saying it sees the lowest available
Speaker 3: supply in the first quarter before improving in the second
Speaker 3: quarter and beyond. So we have seen this with a
Speaker 3: lot of the players in the chip sector. The demand
Speaker 3: is there, but the supply they're not able to meet
Speaker 3: it from.
Speaker 1: You know, it's kind of interesting. We were speaking with
Speaker 1: the Jay Goldberg over at Seaport earlier today. He's actually
Speaker 1: relatively bullish on Intel. Wishould point out, this is a
Speaker 1: stock that has something like thirty six holds something like seven.
Speaker 2: Or eight cells.
Speaker 1: There's only nine analysts out there on the street that
Speaker 1: I would buy, and Jay is one of them, and
Speaker 1: he actually thinks that they can actually start to ramp
Speaker 1: up production on some of these chips. His biggest concern
Speaker 1: was whether they can do that in a cost effective way.
Speaker 1: He said, he's going to be really laser focused on
Speaker 1: what this company has to say on the conference call
Speaker 1: about those costs going forward.
Speaker 4: It was also interesting to hear him explain why we
Speaker 4: saw such a huge search in Intel Life asked year,
Speaker 4: the question was whether Intel was going to be able
Speaker 4: to continue to exist. Of course, now it has the
Speaker 4: Trump administration's backing. The Trump administration does have a stake
Speaker 4: in this company.
Speaker 5: You have a steak in this company, Romayne is a
Speaker 5: stake in this company. We own ten percent of this
Speaker 5: company as Americans.
Speaker 3: Yes, I think you bring up a really good point.
Speaker 3: So is this the US backing trade or fundamentally is
Speaker 3: this company getting on a better trajectory? And I think
Speaker 3: that's where we've got to kind of watch and see
Speaker 3: what else commentary we get from this company and is
Speaker 3: it able to stick around for a long time.
Speaker 1: I think I'll be interesting whether how they address that
Speaker 1: on the conference call. And I think it's kind of
Speaker 1: the answer to your questions kind of yes and yes, right,
Speaker 1: this is still about basic, good old fashion corporate fundamentals.
Speaker 1: But also, like it's placed in the AI space, does
Speaker 1: that relationship with the US, that ten percent steak and
Speaker 1: whatever sort of things the White House can use their
Speaker 1: bullying bulpit for to sort of help this company build out,
Speaker 1: does that become the fundamental story? I don't know.
Speaker 4: I also want to point out it's foundry revenue. Excited
Speaker 4: to get more color there, foundry revenue coming in the
Speaker 4: fourth quarter five point or four point five to one
Speaker 4: billion dollars. The estimate had actually been for four point
Speaker 4: three six billion dollars, So actually a bit of a
Speaker 4: surprise there. The big question is, you know, what does
Speaker 4: the customer acquisition strategy look like? Are they adding new
Speaker 4: clients there? One of the big fundamental questions about Intel
Speaker 4: at this juncture and their place, to Romaine's point in
Speaker 4: this AI space.
Speaker 5: Just to reiterate some headlines as we watch, Intel shares
Speaker 5: down about five percent in the after hours. The company
Speaker 5: says it's making good progress in fourteen A production. Lib
Speaker 5: Bhutan says production yields not up to standards, and the
Speaker 5: CEO says chip maker missed a lot of opportunities and
Speaker 5: says they can't get enough supply to meet orders though
Speaker 5: demand is quite strong.
Speaker 3: All right, guys, let's go to Capital One Financial, also
Speaker 3: reporting its earnings after the closing bell, and you've got
Speaker 3: a couple of headlines. But let's get to one from
Speaker 3: the Wall Street Journal that it is planning to buy
Speaker 3: Brex for five point fifteen billion in a cash and
Speaker 3: stock deal. So some movement within another financial another banking
Speaker 3: company in terms of an acquisition, a pretty sizable one
Speaker 3: if you will. The stock right now, that's a big deal,
Speaker 3: down about two point six percent, so again confirming that pact.
Speaker 3: And I'm just going to kind of do a quick
Speaker 3: look at fourth justity but go sorry, but.
Speaker 1: I just want to say on the brex deal, because
Speaker 1: that's a big deal because we've been talking a lot
Speaker 1: about these credit card potential caps on credit card rate
Speaker 1: thes and Brex's I mean, this is basically rewards and
Speaker 1: kind of everything not really fee related at least. That's
Speaker 1: their sort of bread and butter, the technology and the
Speaker 1: rewards that go along with it. So it's kind of
Speaker 1: interesting to see Capital One leaning deeper into that reward space.
Speaker 5: Yeah, I'm looking at the Wall Street Journal right up
Speaker 5: of this. It oversees brex overseas close to thirteen billion
Speaker 5: dollars in deposits held at partner banks and money market funds.
Speaker 5: The acquisition expected to close in the second quarter of
Speaker 5: this year. Brexas' CEO will plan to continue in the
Speaker 5: role after this deal closes. Capital One Financial shares down
Speaker 5: in the offt hours by about four point three percent.
Speaker 3: All right, folks, back to inutil we go, because we've
Speaker 3: seen this one kicking around in the aftermarket again. The
Speaker 3: headline the company giving a lackluster forecast for the current quarter,
Speaker 3: talking about supply shortages are making it harder to meet
Speaker 3: customer demand. So once again a disappointment for investors who
Speaker 3: kind were looking for more of a boost from new products.
Speaker 3: And you can see Intel shares they are just trading
Speaker 3: down about three percent here in the aftermarket. And keep
Speaker 3: in mind this has been a top performer among the
Speaker 3: semiconductor names over the last year or so.
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