1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,880 --> 00:00:13,320 Speaker 2: This is the closing bell on this stock movers report 3 00:00:13,560 --> 00:00:16,520 Speaker 2: the company's making moves at the close of US trading 4 00:00:16,760 --> 00:00:21,319 Speaker 2: with Carol Masser, Tim Stenebeck, Romain Bostick, and Scarlet Food. 5 00:00:22,520 --> 00:00:24,880 Speaker 3: The S and P five hundred guys, most names, no 6 00:00:24,960 --> 00:00:27,960 Speaker 3: surprise lower in today's session after we've seen the major 7 00:00:27,960 --> 00:00:30,480 Speaker 3: indices under pressure three hundred and two to the downside, 8 00:00:30,520 --> 00:00:33,760 Speaker 3: Katie one hundred and ninety nine gaining ground to unchanged. 9 00:00:34,000 --> 00:00:34,800 Speaker 1: Well, let's take a. 10 00:00:34,720 --> 00:00:36,800 Speaker 4: Look at the sectors how they performed today. You did 11 00:00:36,960 --> 00:00:40,160 Speaker 4: have four sectors managed to finish in the green, seven 12 00:00:40,640 --> 00:00:42,440 Speaker 4: in the red. You can see that the tech sector 13 00:00:42,520 --> 00:00:44,840 Speaker 4: was down, and that's certainly taking a bite out of things. 14 00:00:44,920 --> 00:00:48,040 Speaker 4: But in terms of what did do well, energy outperforming 15 00:00:48,159 --> 00:00:51,599 Speaker 4: up one point three percent as a sector, consumer staples, healthcare, 16 00:00:51,640 --> 00:00:54,320 Speaker 4: real estate also managing to finish in the green. But 17 00:00:54,400 --> 00:00:57,440 Speaker 4: it's going to be hard to actually see the benchmark 18 00:00:57,560 --> 00:00:59,960 Speaker 4: go green when you have tech weigh on things like that. 19 00:01:00,520 --> 00:01:03,680 Speaker 3: Yeah, right, big pressure, lots of pressure. Having said that, 20 00:01:04,120 --> 00:01:07,240 Speaker 3: Intuitive Surgical definitely an outperformer, guys, top in the S 21 00:01:07,280 --> 00:01:10,080 Speaker 3: and P and Nasdaq. The Robotic Surgery company you know them. 22 00:01:10,080 --> 00:01:13,480 Speaker 3: While finishing the day just shy of a fourteen percent gain, 23 00:01:14,120 --> 00:01:17,320 Speaker 3: the company did boost its worldwide da Vinci procedure growth 24 00:01:17,360 --> 00:01:18,319 Speaker 3: forecast for the year. 25 00:01:18,400 --> 00:01:19,920 Speaker 1: So I use one of those ones. 26 00:01:20,080 --> 00:01:20,400 Speaker 2: I know. 27 00:01:20,920 --> 00:01:21,440 Speaker 3: We're still cool. 28 00:01:21,440 --> 00:01:23,760 Speaker 1: I mean I didn't personally use it, but it's used 29 00:01:23,800 --> 00:01:24,080 Speaker 1: on me. 30 00:01:24,280 --> 00:01:25,559 Speaker 3: Yeah, and I guess it went well. 31 00:01:25,680 --> 00:01:25,920 Speaker 4: It did. 32 00:01:26,000 --> 00:01:26,560 Speaker 1: I'm still here. 33 00:01:26,720 --> 00:01:27,440 Speaker 2: We're so happy. 34 00:01:27,840 --> 00:01:29,720 Speaker 5: You know, the dot banks, the thank you doctor Tuari. 35 00:01:29,840 --> 00:01:30,280 Speaker 2: It was great. 36 00:01:30,440 --> 00:01:32,920 Speaker 5: If you're watching the doctors wear goggles to use these. 37 00:01:32,959 --> 00:01:34,880 Speaker 5: I was actually having a conversation with a surgeon last 38 00:01:34,959 --> 00:01:37,479 Speaker 5: night who uses this machine, and he made the point 39 00:01:37,480 --> 00:01:40,280 Speaker 5: that it actually hasn't changed much since he began using 40 00:01:40,319 --> 00:01:43,640 Speaker 5: it over the last ten years. It's remained relatively consistent 41 00:01:43,680 --> 00:01:45,920 Speaker 5: with what it can do and sort of yes, it's 42 00:01:45,920 --> 00:01:48,760 Speaker 5: gotten smaller a little bit, but it hasn't actually changed 43 00:01:48,760 --> 00:01:49,080 Speaker 5: that much. 44 00:01:49,240 --> 00:01:50,280 Speaker 4: Sounds like a great dinner. 45 00:01:50,400 --> 00:01:51,760 Speaker 5: Yeah we had burgers. 46 00:01:52,360 --> 00:01:54,640 Speaker 3: Ok, well, I'm going to say, great, gayner, can you. 47 00:01:54,640 --> 00:01:56,120 Speaker 5: Go to dinner with me? You talk about stocks that 48 00:01:56,160 --> 00:01:57,160 Speaker 5: are moving, that's what happens. 49 00:01:57,440 --> 00:02:00,240 Speaker 3: Cool, all right, our performance, but still the stock only 50 00:02:00,320 --> 00:02:02,760 Speaker 3: up about not even quite one percent for a year 51 00:02:02,800 --> 00:02:03,040 Speaker 3: to date. 52 00:02:03,080 --> 00:02:04,520 Speaker 1: Here was you said burgers. Did you mean like a 53 00:02:04,600 --> 00:02:05,240 Speaker 1: veggie burger? 54 00:02:06,440 --> 00:02:09,799 Speaker 5: We did chicken. We just go there of course, Oh my. 55 00:02:09,760 --> 00:02:12,280 Speaker 3: God, it always comes back to food when it's always 56 00:02:12,280 --> 00:02:14,679 Speaker 3: always hey Hilton. I just want to mention Hilton Worldwide 57 00:02:14,760 --> 00:02:17,919 Speaker 3: up about three point two percent, also a top gainer, 58 00:02:17,960 --> 00:02:19,720 Speaker 3: I think earlier in the session in the S and 59 00:02:19,760 --> 00:02:22,840 Speaker 3: P the company boost it's annually adjusted even a forecast 60 00:02:23,000 --> 00:02:25,400 Speaker 3: and the low end of its net unit growth outlook 61 00:02:25,520 --> 00:02:28,760 Speaker 3: for the year. So some optimism there. And I was 62 00:02:28,840 --> 00:02:31,120 Speaker 3: going to say beyond me, but don't judge me. It 63 00:02:31,160 --> 00:02:33,720 Speaker 3: was up one hundred and twelve percent earlier in the session, guys, 64 00:02:33,760 --> 00:02:37,080 Speaker 3: but actually finishing to day down nine to the percent. 65 00:02:37,120 --> 00:02:37,959 Speaker 2: But it's hard. 66 00:02:38,000 --> 00:02:40,040 Speaker 5: Wait, Whire, that was the range today? 67 00:02:40,240 --> 00:02:43,280 Speaker 3: Yes, it was down twenty seven percent and it's lost today. 68 00:02:43,320 --> 00:02:44,920 Speaker 1: So talk about that was like the widest I was 69 00:02:44,919 --> 00:02:46,840 Speaker 1: taken of the widest range we've seen on that stock 70 00:02:46,840 --> 00:02:49,280 Speaker 1: at least since twenty twenty two, and on a percentage basis, 71 00:02:49,320 --> 00:02:51,639 Speaker 1: I mean what we've seen this week basically the widest 72 00:02:51,680 --> 00:02:52,919 Speaker 1: sense it's been a public company. 73 00:02:52,960 --> 00:02:54,800 Speaker 3: But it's still up right, Like let me, oh no, 74 00:02:54,840 --> 00:02:57,760 Speaker 3: it's down, it's down percent for the year. I was 75 00:02:57,800 --> 00:02:59,079 Speaker 3: going there, all right. 76 00:02:59,000 --> 00:03:02,680 Speaker 5: It's meaning yeah to talk about some non meme stocks. 77 00:03:02,720 --> 00:03:05,800 Speaker 5: Let's talk about Netflix down ten percent today, biggest decline 78 00:03:05,840 --> 00:03:08,640 Speaker 5: going back to April of twenty twenty two. This after 79 00:03:08,880 --> 00:03:11,320 Speaker 5: we learned about a tax dispute with Brazil cutting into 80 00:03:11,320 --> 00:03:12,720 Speaker 5: third quarter earnings and hey. 81 00:03:12,639 --> 00:03:15,440 Speaker 1: I'll go to revee here. Tesla Earning's crossing the wire 82 00:03:15,520 --> 00:03:17,680 Speaker 1: right now. Let's get right to it here. My apologies. 83 00:03:17,720 --> 00:03:20,880 Speaker 1: Tim adjusted EPs in the most recent quarter for Tesla 84 00:03:20,960 --> 00:03:23,240 Speaker 1: coming in at fifty cents a share. The street on 85 00:03:23,320 --> 00:03:26,320 Speaker 1: average was looking for fifty four cents. Revenue did come 86 00:03:26,360 --> 00:03:29,960 Speaker 1: in above estimates, though, at twenty eight point one billion, 87 00:03:30,080 --> 00:03:33,079 Speaker 1: so a beat on the revenue side, a slight miss 88 00:03:33,080 --> 00:03:36,440 Speaker 1: on the EPs side. For cash flow well above what 89 00:03:36,480 --> 00:03:38,560 Speaker 1: the street was looking for three point nine to nine 90 00:03:38,560 --> 00:03:41,600 Speaker 1: billion dollars in free cash flow. Now the estimate based 91 00:03:41,640 --> 00:03:44,960 Speaker 1: on Bloomberg reporting is one point twenty five, so that's 92 00:03:45,280 --> 00:03:47,480 Speaker 1: almost four times what the street was expecting. We'll have 93 00:03:47,480 --> 00:03:49,640 Speaker 1: to dive a little bit deeper into that gross margin. 94 00:03:49,680 --> 00:03:53,200 Speaker 1: A slight beat at eighteen percent here, and operating income 95 00:03:53,240 --> 00:03:55,800 Speaker 1: coming in relatively in line with estimates one point six 96 00:03:55,840 --> 00:03:57,880 Speaker 1: to two Street was looking for one point sixty five. 97 00:03:57,720 --> 00:03:59,360 Speaker 4: Yea, and you can see that the stock is kind 98 00:03:59,360 --> 00:04:02,400 Speaker 4: of deciding what to do with this information. As you mentioned, 99 00:04:02,440 --> 00:04:05,520 Speaker 4: of course, a big miss when it comes to adjusted EPs, 100 00:04:05,560 --> 00:04:08,680 Speaker 4: but that free cash flow certainly is an eye popping 101 00:04:08,720 --> 00:04:10,800 Speaker 4: figure here when you take a look at it, being 102 00:04:10,920 --> 00:04:14,160 Speaker 4: forty six percent higher year over year and more than 103 00:04:14,240 --> 00:04:17,560 Speaker 4: double the estimates. Shares down just a little bit after hours. 104 00:04:17,600 --> 00:04:20,599 Speaker 4: The volatility on this stock has been pretty incredible as well, 105 00:04:20,640 --> 00:04:23,760 Speaker 4: up one hundred percent since April's lows, but still only 106 00:04:23,800 --> 00:04:25,200 Speaker 4: about eight percent higher for the year. 107 00:04:25,279 --> 00:04:27,640 Speaker 5: Yeah, we're worth repeating that third quarter of free cash 108 00:04:27,640 --> 00:04:30,679 Speaker 5: flow number three point nine to nine billion, massively exceeding 109 00:04:30,800 --> 00:04:33,320 Speaker 5: estimates of one point twenty five billion, third quarter adjusted 110 00:04:33,400 --> 00:04:36,040 Speaker 5: earnings per share of fifty cents the estimate was fifty 111 00:04:36,120 --> 00:04:39,160 Speaker 5: four cents. Third quarter operating income one point six two 112 00:04:39,200 --> 00:04:42,120 Speaker 5: billion dollars estimates for one point six five billion dollars. 113 00:04:42,320 --> 00:04:44,480 Speaker 5: Shares those still moving lower in the after hours, down 114 00:04:44,600 --> 00:04:45,679 Speaker 5: about one and a half percent. 115 00:04:45,760 --> 00:04:47,839 Speaker 3: Yeah, I mean, let's remind everybody, I mean, this stock 116 00:04:47,880 --> 00:04:50,960 Speaker 3: has been on quite a tear. We've seen a bounce 117 00:04:51,040 --> 00:04:54,400 Speaker 3: back off of its lows, and so some concerns when 118 00:04:54,440 --> 00:04:56,560 Speaker 3: it comes to the valuations that we've seen compared with 119 00:04:56,600 --> 00:04:58,159 Speaker 3: some of the other mag seven. I mean, this is 120 00:04:58,160 --> 00:05:01,480 Speaker 3: a company remain with a forward pe of almost two 121 00:05:01,560 --> 00:05:04,839 Speaker 3: hundred and fifty one, so you know, investors want to 122 00:05:04,880 --> 00:05:08,159 Speaker 3: see some outperformance or get an idea of revenue growth 123 00:05:08,200 --> 00:05:08,880 Speaker 3: going forward. 124 00:05:09,000 --> 00:05:11,960 Speaker 1: Yeah, they talk. I'm just going through the investor statement here, 125 00:05:12,000 --> 00:05:14,320 Speaker 1: and they talk a lot, not so much about the vehicles, 126 00:05:14,320 --> 00:05:17,119 Speaker 1: but the idea of new products and looking to launch 127 00:05:17,160 --> 00:05:19,120 Speaker 1: new products. Of course, they do flag some of the 128 00:05:19,200 --> 00:05:21,359 Speaker 1: updates to the Model three and the Model Why, but 129 00:05:21,520 --> 00:05:24,200 Speaker 1: of course a lot of talk about their other businesses, 130 00:05:24,240 --> 00:05:27,200 Speaker 1: of course in the hardware business, in the energy storage business, 131 00:05:27,200 --> 00:05:29,760 Speaker 1: and of course when it comes to robotics and automation. 132 00:05:30,240 --> 00:05:31,920 Speaker 4: And we are going to continue to keep an eye 133 00:05:31,920 --> 00:05:33,720 Speaker 4: on Test. Let me just quickly break in and talk 134 00:05:33,760 --> 00:05:37,479 Speaker 4: about LAMB Research. These results coming out adjusted EPs for 135 00:05:37,680 --> 00:05:42,360 Speaker 4: the first quarter actually beating estimates here, adjusted EPs coming 136 00:05:42,400 --> 00:05:44,760 Speaker 4: in at a dollar and twenty six cents. The estimate 137 00:05:44,800 --> 00:05:47,279 Speaker 4: had been for a dollar and twenty two cents, so 138 00:05:47,320 --> 00:05:51,200 Speaker 4: a beat there on adjusted EPs. Also beating on revenue 139 00:05:51,360 --> 00:05:53,640 Speaker 4: as well, coming in in the first quarter five point 140 00:05:53,640 --> 00:05:56,400 Speaker 4: three two billion dollars. The estimate had been for five 141 00:05:56,480 --> 00:05:58,840 Speaker 4: point two three billion dollars. You can see shares up 142 00:05:59,040 --> 00:06:01,080 Speaker 4: about one person in the after hours. 143 00:06:01,160 --> 00:06:03,280 Speaker 5: We'll get back to Tesla in just a moment. Meantime, 144 00:06:03,360 --> 00:06:06,640 Speaker 5: Las Vegas sans out with numbers. We're seeing the stock 145 00:06:06,720 --> 00:06:09,320 Speaker 5: higher four point seven percent in the after hours. Third 146 00:06:09,400 --> 00:06:13,159 Speaker 5: Quarter adjusted EPs came in above estimates at seventy eight cents, 147 00:06:13,520 --> 00:06:16,039 Speaker 5: third quarter net revenue coming in above estimates at three 148 00:06:16,080 --> 00:06:18,840 Speaker 5: point three three billion dollars. Once again, shares in the 149 00:06:18,880 --> 00:06:21,279 Speaker 5: after hours hired by about four point seven percent. 150 00:06:21,279 --> 00:06:23,599 Speaker 3: All right, let's go back to Tesla, folks, because we 151 00:06:23,640 --> 00:06:27,080 Speaker 3: continue to monitor this one and it's been bouncing around here. 152 00:06:27,120 --> 00:06:28,800 Speaker 3: Just a little bit lower down about six tens of 153 00:06:28,880 --> 00:06:32,440 Speaker 3: a percent here in the after market. We're looking at 154 00:06:32,480 --> 00:06:34,640 Speaker 3: Tesla posting third quarter profit that fell short of Wall 155 00:06:34,680 --> 00:06:40,040 Speaker 3: Street expectations despite record ev sales, assign of the pressure 156 00:06:40,080 --> 00:06:43,400 Speaker 3: automakers are facing from shifting federal policies and rising costs. 157 00:06:43,720 --> 00:06:46,120 Speaker 3: Just eddorings were fifty cents per share in the period, 158 00:06:46,120 --> 00:06:49,400 Speaker 3: The company said Alice had expected fifty four cents on average, 159 00:06:49,440 --> 00:06:53,080 Speaker 3: and estimates compiled by US Revenue was twenty eight point 160 00:06:53,120 --> 00:06:56,800 Speaker 3: one billion. But again, the stock i agree that investors 161 00:06:56,800 --> 00:06:58,440 Speaker 3: are trying to figure out this one ro made. 162 00:06:58,400 --> 00:06:59,720 Speaker 1: Trying to figure it out, and I think it gets 163 00:06:59,760 --> 00:07:01,920 Speaker 1: at this idea of a company at an inflection point 164 00:07:02,080 --> 00:07:04,040 Speaker 1: when we talk about the ev side of the business. 165 00:07:04,080 --> 00:07:06,880 Speaker 1: Of course, the loss of that US tax credit a 166 00:07:06,880 --> 00:07:09,560 Speaker 1: big issue here, not only for Tesla but for its 167 00:07:09,560 --> 00:07:12,120 Speaker 1: peers as well. They mentioned that in the shareholder letter, 168 00:07:12,600 --> 00:07:15,760 Speaker 1: particularly when it comes to lower regulatory credit revenue and 169 00:07:15,840 --> 00:07:20,440 Speaker 1: lower hurt their overall revenue but also impacted the bottom 170 00:07:20,480 --> 00:07:23,240 Speaker 1: line with regards to profitability. They also mention a few 171 00:07:23,320 --> 00:07:26,120 Speaker 1: one time costs there as well that also did weigh 172 00:07:26,160 --> 00:07:28,960 Speaker 1: on profitability too. So this is a company that, of course, 173 00:07:29,000 --> 00:07:31,520 Speaker 1: looking backwards, you can see a lot of the issues 174 00:07:31,520 --> 00:07:33,440 Speaker 1: that they're having to grapple with. But the big question, 175 00:07:33,600 --> 00:07:35,800 Speaker 1: particularly when we get to that conference call in less 176 00:07:35,800 --> 00:07:38,400 Speaker 1: than an hour's time, is what is the future? Is 177 00:07:38,960 --> 00:07:41,320 Speaker 1: going to be a discussion about new vehicles or is 178 00:07:41,360 --> 00:07:44,280 Speaker 1: this going to be more discussion about autonomy and robotics. 179 00:07:44,320 --> 00:07:46,320 Speaker 5: Well, they're going to try to make it about AI, 180 00:07:46,440 --> 00:07:49,280 Speaker 5: autonomy and robotics. I'm looking at the twenty nine page 181 00:07:49,520 --> 00:07:52,960 Speaker 5: Q three quarterly update. The third paragraph in talks about 182 00:07:52,960 --> 00:07:56,080 Speaker 5: how every Tesla vehicle delivered today is designed for autonomy. 183 00:07:56,200 --> 00:07:59,040 Speaker 5: Every Tesla energy storage product is capable of being enhanced 184 00:07:59,040 --> 00:08:02,920 Speaker 5: and optimized our Virtual power Planner Auto Bidter functionality. We 185 00:08:02,960 --> 00:08:05,360 Speaker 5: continue to deliver a fleet of products that brings AI 186 00:08:05,440 --> 00:08:08,080 Speaker 5: into the real world as we pursue a future of 187 00:08:08,120 --> 00:08:10,720 Speaker 5: sustainable abundances outlined in our master plan. 188 00:08:10,760 --> 00:08:12,960 Speaker 3: All right, IBM, crossing the Bloomberg terminal. Here's the red 189 00:08:13,000 --> 00:08:15,880 Speaker 3: sticky though number that jumps out. Third quarter revenue folks 190 00:08:15,920 --> 00:08:19,440 Speaker 3: slight beat sixteen point thirty three billion versus an estimate 191 00:08:19,480 --> 00:08:23,400 Speaker 3: of sixteen point one billion. Software so key third quarter 192 00:08:23,560 --> 00:08:27,320 Speaker 3: software revenue of seven point twenty one billion. That is 193 00:08:27,400 --> 00:08:30,440 Speaker 3: smack in line with what the street was expecting. Also, 194 00:08:30,680 --> 00:08:33,440 Speaker 3: some of the outlook sees fiscal year free cash flow 195 00:08:33,720 --> 00:08:37,040 Speaker 3: fourteen billion dollars had seen above thirteen point five billion. 196 00:08:37,080 --> 00:08:39,720 Speaker 3: The estimate on the street is thirteen point forty eight billion. 197 00:08:40,320 --> 00:08:44,079 Speaker 3: Consulting revenue also important, third quarter consulting revenue five point 198 00:08:44,120 --> 00:08:46,800 Speaker 3: thirty two billion, and that two KTI is coming better 199 00:08:46,840 --> 00:08:49,800 Speaker 3: than expected. A quick check on the stock in the aftermarket, 200 00:08:49,880 --> 00:08:52,520 Speaker 3: and I'm pulling it up at my Bloomberg and it 201 00:08:52,600 --> 00:08:54,000 Speaker 3: is down three and a half percent. 202 00:08:54,080 --> 00:08:56,440 Speaker 4: Katie interesting. I mean this was another name though where 203 00:08:56,480 --> 00:08:59,559 Speaker 4: expectations were high, and you can see year to date 204 00:08:59,600 --> 00:09:02,640 Speaker 4: through the close up thirty three percent on IBM shares. 205 00:09:02,720 --> 00:09:04,679 Speaker 4: So this goes back to what we were talking about. 206 00:09:04,840 --> 00:09:07,640 Speaker 4: Beat rates are high. We're getting positive results here, but 207 00:09:07,960 --> 00:09:11,199 Speaker 4: the reaction to some of these earnings reports certainly has 208 00:09:11,240 --> 00:09:13,000 Speaker 4: been in the opposite. 209 00:09:12,520 --> 00:09:14,480 Speaker 3: Direction, and we should put out the CEO of IBM 210 00:09:14,600 --> 00:09:17,680 Speaker 3: was at the White House yesterday talking about investing in 211 00:09:17,720 --> 00:09:20,360 Speaker 3: the United States, so we'll continue to monitor that. 212 00:09:21,440 --> 00:09:25,480 Speaker 2: This stock Movers report from Bloomberg Radio. Check back with 213 00:09:25,559 --> 00:09:28,120 Speaker 2: us throughout the day for the latest roundup of companies 214 00:09:28,200 --> 00:09:31,320 Speaker 2: making news on Wall Street and for the latest market 215 00:09:31,320 --> 00:09:35,800 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 216 00:09:35,880 --> 00:09:39,400 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 217 00:09:39,440 --> 00:09:40,959 Speaker 2: the Bloomberg Business app.