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 Bostick, and Scarlet Food.
Speaker 3: The S and P five hundred guys, most names, no
Speaker 3: surprise lower in today's session after we've seen the major
Speaker 3: indices under pressure three hundred and two to the downside,
Speaker 3: Katie one hundred and ninety nine gaining ground to unchanged.
Speaker 1: Well, let's take a.
Speaker 4: Look at the sectors how they performed today. You did
Speaker 4: have four sectors managed to finish in the green, seven
Speaker 4: in the red. You can see that the tech sector
Speaker 4: was down, and that's certainly taking a bite out of things.
Speaker 4: But in terms of what did do well, energy outperforming
Speaker 4: up one point three percent as a sector, consumer staples, healthcare,
Speaker 4: real estate also managing to finish in the green. But
Speaker 4: it's going to be hard to actually see the benchmark
Speaker 4: go green when you have tech weigh on things like that.
Speaker 3: Yeah, right, big pressure, lots of pressure. Having said that,
Speaker 3: Intuitive Surgical definitely an outperformer, guys, top in the S
Speaker 3: and P and Nasdaq. The Robotic Surgery company you know them.
Speaker 3: While finishing the day just shy of a fourteen percent gain,
Speaker 3: the company did boost its worldwide da Vinci procedure growth
Speaker 3: forecast for the year.
Speaker 1: So I use one of those ones.
Speaker 2: I know.
Speaker 3: We're still cool.
Speaker 1: I mean I didn't personally use it, but it's used
Speaker 1: on me.
Speaker 3: Yeah, and I guess it went well.
Speaker 4: It did.
Speaker 1: I'm still here.
Speaker 2: We're so happy.
Speaker 5: You know, the dot banks, the thank you doctor Tuari.
Speaker 2: It was great.
Speaker 5: If you're watching the doctors wear goggles to use these.
Speaker 5: I was actually having a conversation with a surgeon last
Speaker 5: night who uses this machine, and he made the point
Speaker 5: that it actually hasn't changed much since he began using
Speaker 5: it over the last ten years. It's remained relatively consistent
Speaker 5: with what it can do and sort of yes, it's
Speaker 5: gotten smaller a little bit, but it hasn't actually changed
Speaker 5: that much.
Speaker 4: Sounds like a great dinner.
Speaker 5: Yeah we had burgers.
Speaker 3: Ok, well, I'm going to say, great, gayner, can you.
Speaker 5: Go to dinner with me? You talk about stocks that
Speaker 5: are moving, that's what happens.
Speaker 3: Cool, all right, our performance, but still the stock only
Speaker 3: up about not even quite one percent for a year
Speaker 3: to date.
Speaker 1: Here was you said burgers. Did you mean like a
Speaker 1: veggie burger?
Speaker 5: We did chicken. We just go there of course, Oh my.
Speaker 3: God, it always comes back to food when it's always
Speaker 3: always hey Hilton. I just want to mention Hilton Worldwide
Speaker 3: up about three point two percent, also a top gainer,
Speaker 3: I think earlier in the session in the S and
Speaker 3: P the company boost it's annually adjusted even a forecast
Speaker 3: and the low end of its net unit growth outlook
Speaker 3: for the year. So some optimism there. And I was
Speaker 3: going to say beyond me, but don't judge me. It
Speaker 3: was up one hundred and twelve percent earlier in the session, guys,
Speaker 3: but actually finishing to day down nine to the percent.
Speaker 2: But it's hard.
Speaker 5: Wait, Whire, that was the range today?
Speaker 3: Yes, it was down twenty seven percent and it's lost today.
Speaker 1: So talk about that was like the widest I was
Speaker 1: taken of the widest range we've seen on that stock
Speaker 1: at least since twenty twenty two, and on a percentage basis,
Speaker 1: I mean what we've seen this week basically the widest
Speaker 1: sense it's been a public company.
Speaker 3: But it's still up right, Like let me, oh no,
Speaker 3: it's down, it's down percent for the year. I was
Speaker 3: going there, all right.
Speaker 5: It's meaning yeah to talk about some non meme stocks.
Speaker 5: Let's talk about Netflix down ten percent today, biggest decline
Speaker 5: going back to April of twenty twenty two. This after
Speaker 5: we learned about a tax dispute with Brazil cutting into
Speaker 5: third quarter earnings and hey.
Speaker 1: I'll go to revee here. Tesla Earning's crossing the wire
Speaker 1: right now. Let's get right to it here. My apologies.
Speaker 1: Tim adjusted EPs in the most recent quarter for Tesla
Speaker 1: coming in at fifty cents a share. The street on
Speaker 1: average was looking for fifty four cents. Revenue did come
Speaker 1: in above estimates, though, at twenty eight point one billion,
Speaker 1: so a beat on the revenue side, a slight miss
Speaker 1: on the EPs side. For cash flow well above what
Speaker 1: the street was looking for three point nine to nine
Speaker 1: billion dollars in free cash flow. Now the estimate based
Speaker 1: on Bloomberg reporting is one point twenty five, so that's
Speaker 1: almost four times what the street was expecting. We'll have
Speaker 1: to dive a little bit deeper into that gross margin.
Speaker 1: A slight beat at eighteen percent here, and operating income
Speaker 1: coming in relatively in line with estimates one point six
Speaker 1: to two Street was looking for one point sixty five.
Speaker 4: Yea, and you can see that the stock is kind
Speaker 4: of deciding what to do with this information. As you mentioned,
Speaker 4: of course, a big miss when it comes to adjusted EPs,
Speaker 4: but that free cash flow certainly is an eye popping
Speaker 4: figure here when you take a look at it, being
Speaker 4: forty six percent higher year over year and more than
Speaker 4: double the estimates. Shares down just a little bit after hours.
Speaker 4: The volatility on this stock has been pretty incredible as well,
Speaker 4: up one hundred percent since April's lows, but still only
Speaker 4: about eight percent higher for the year.
Speaker 5: Yeah, we're worth repeating that third quarter of free cash
Speaker 5: flow number three point nine to nine billion, massively exceeding
Speaker 5: estimates of one point twenty five billion, third quarter adjusted
Speaker 5: earnings per share of fifty cents the estimate was fifty
Speaker 5: four cents. Third quarter operating income one point six two
Speaker 5: billion dollars estimates for one point six five billion dollars.
Speaker 5: Shares those still moving lower in the after hours, down
Speaker 5: about one and a half percent.
Speaker 3: Yeah, I mean, let's remind everybody, I mean, this stock
Speaker 3: has been on quite a tear. We've seen a bounce
Speaker 3: back off of its lows, and so some concerns when
Speaker 3: it comes to the valuations that we've seen compared with
Speaker 3: some of the other mag seven. I mean, this is
Speaker 3: a company remain with a forward pe of almost two
Speaker 3: hundred and fifty one, so you know, investors want to
Speaker 3: see some outperformance or get an idea of revenue growth
Speaker 3: going forward.
Speaker 1: Yeah, they talk. I'm just going through the investor statement here,
Speaker 1: and they talk a lot, not so much about the vehicles,
Speaker 1: but the idea of new products and looking to launch
Speaker 1: new products. Of course, they do flag some of the
Speaker 1: updates to the Model three and the Model Why, but
Speaker 1: of course a lot of talk about their other businesses,
Speaker 1: of course in the hardware business, in the energy storage business,
Speaker 1: and of course when it comes to robotics and automation.
Speaker 4: And we are going to continue to keep an eye
Speaker 4: on Test. Let me just quickly break in and talk
Speaker 4: about LAMB Research. These results coming out adjusted EPs for
Speaker 4: the first quarter actually beating estimates here, adjusted EPs coming
Speaker 4: in at a dollar and twenty six cents. The estimate
Speaker 4: had been for a dollar and twenty two cents, so
Speaker 4: a beat there on adjusted EPs. Also beating on revenue
Speaker 4: as well, coming in in the first quarter five point
Speaker 4: three two billion dollars. The estimate had been for five
Speaker 4: point two three billion dollars. You can see shares up
Speaker 4: about one person in the after hours.
Speaker 5: We'll get back to Tesla in just a moment. Meantime,
Speaker 5: Las Vegas sans out with numbers. We're seeing the stock
Speaker 5: higher four point seven percent in the after hours. Third
Speaker 5: Quarter adjusted EPs came in above estimates at seventy eight cents,
Speaker 5: third quarter net revenue coming in above estimates at three
Speaker 5: point three three billion dollars. Once again, shares in the
Speaker 5: after hours hired by about four point seven percent.
Speaker 3: All right, let's go back to Tesla, folks, because we
Speaker 3: continue to monitor this one and it's been bouncing around here.
Speaker 3: Just a little bit lower down about six tens of
Speaker 3: a percent here in the after market. We're looking at
Speaker 3: Tesla posting third quarter profit that fell short of Wall
Speaker 3: Street expectations despite record ev sales, assign of the pressure
Speaker 3: automakers are facing from shifting federal policies and rising costs.
Speaker 3: Just eddorings were fifty cents per share in the period,
Speaker 3: The company said Alice had expected fifty four cents on average,
Speaker 3: and estimates compiled by US Revenue was twenty eight point
Speaker 3: one billion. But again, the stock i agree that investors
Speaker 3: are trying to figure out this one ro made.
Speaker 1: Trying to figure it out, and I think it gets
Speaker 1: at this idea of a company at an inflection point
Speaker 1: when we talk about the ev side of the business.
Speaker 1: Of course, the loss of that US tax credit a
Speaker 1: big issue here, not only for Tesla but for its
Speaker 1: peers as well. They mentioned that in the shareholder letter,
Speaker 1: particularly when it comes to lower regulatory credit revenue and
Speaker 1: lower hurt their overall revenue but also impacted the bottom
Speaker 1: line with regards to profitability. They also mention a few
Speaker 1: one time costs there as well that also did weigh
Speaker 1: on profitability too. So this is a company that, of course,
Speaker 1: looking backwards, you can see a lot of the issues
Speaker 1: that they're having to grapple with. But the big question,
Speaker 1: particularly when we get to that conference call in less
Speaker 1: than an hour's time, is what is the future? Is
Speaker 1: going to be a discussion about new vehicles or is
Speaker 1: this going to be more discussion about autonomy and robotics.
Speaker 5: Well, they're going to try to make it about AI,
Speaker 5: autonomy and robotics. I'm looking at the twenty nine page
Speaker 5: Q three quarterly update. The third paragraph in talks about
Speaker 5: how every Tesla vehicle delivered today is designed for autonomy.
Speaker 5: Every Tesla energy storage product is capable of being enhanced
Speaker 5: and optimized our Virtual power Planner Auto Bidter functionality. We
Speaker 5: continue to deliver a fleet of products that brings AI
Speaker 5: into the real world as we pursue a future of
Speaker 5: sustainable abundances outlined in our master plan.
Speaker 3: All right, IBM, crossing the Bloomberg terminal. Here's the red
Speaker 3: sticky though number that jumps out. Third quarter revenue folks
Speaker 3: slight beat sixteen point thirty three billion versus an estimate
Speaker 3: of sixteen point one billion. Software so key third quarter
Speaker 3: software revenue of seven point twenty one billion. That is
Speaker 3: smack in line with what the street was expecting. Also,
Speaker 3: some of the outlook sees fiscal year free cash flow
Speaker 3: fourteen billion dollars had seen above thirteen point five billion.
Speaker 3: The estimate on the street is thirteen point forty eight billion.
Speaker 3: Consulting revenue also important, third quarter consulting revenue five point
Speaker 3: thirty two billion, and that two KTI is coming better
Speaker 3: than expected. A quick check on the stock in the aftermarket,
Speaker 3: and I'm pulling it up at my Bloomberg and it
Speaker 3: is down three and a half percent.
Speaker 4: Katie interesting. I mean this was another name though where
Speaker 4: expectations were high, and you can see year to date
Speaker 4: through the close up thirty three percent on IBM shares.
Speaker 4: So this goes back to what we were talking about.
Speaker 4: Beat rates are high. We're getting positive results here, but
Speaker 4: the reaction to some of these earnings reports certainly has
Speaker 4: been in the opposite.
Speaker 3: Direction, and we should put out the CEO of IBM
Speaker 3: was at the White House yesterday talking about investing in
Speaker 3: the United States, so we'll continue to monitor that.
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