WEBVTT - Closing Bell: Texas Instruments Results, Health Insurers Falls, JetBlue Sinks

0:00:02.480 --> 0:00:09.840
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:10.039 --> 0:00:13.520
<v Speaker 2>This is the closing bell on this stock movers report.

0:00:13.760 --> 0:00:16.680
<v Speaker 2>The company's making moves at the close of US trading

0:00:16.880 --> 0:00:21.360
<v Speaker 2>with Carol Masser, Tim Steneback, Romain Bostik, and Katie Greifel.

0:00:22.880 --> 0:00:25.360
<v Speaker 1>Yeah, we're getting earnings right now. Corvo crossing the wire,

0:00:25.400 --> 0:00:27.880
<v Speaker 1>and so too is Texas Instruments, the chip maker, but

0:00:27.960 --> 0:00:30.280
<v Speaker 1>not necessarily the sexy ones that we like to talk

0:00:30.320 --> 0:00:34.120
<v Speaker 1>about here. Industrials Automotives. The company appears to have missed

0:00:34.120 --> 0:00:36.800
<v Speaker 1>on its fourth quarter EPs. For the fourth quarter a

0:00:36.880 --> 0:00:39.360
<v Speaker 1>dollar twenty seven. The street was looking for a dollar thirty.

0:00:39.360 --> 0:00:41.479
<v Speaker 1>That's what it actually had posted a year ago, So

0:00:41.520 --> 0:00:44.320
<v Speaker 1>a dropped year over year and slightly below street estimates.

0:00:44.440 --> 0:00:47.559
<v Speaker 1>Revenue did grow up about ten percent, but just in

0:00:47.600 --> 0:00:49.680
<v Speaker 1>line with estimates at about four point four to two

0:00:49.800 --> 0:00:53.199
<v Speaker 1>billion dollars. Fourteen percent growth in the analog business and

0:00:53.280 --> 0:00:57.080
<v Speaker 1>about eight percent growth and that embedded processing business as well.

0:00:57.280 --> 0:00:59.800
<v Speaker 1>The shares oscillating between gains and losses looks like right

0:00:59.840 --> 0:01:02.440
<v Speaker 1>now out up about three percent in the after hours trade.

0:01:02.520 --> 0:01:04.720
<v Speaker 3>Yeah, trying to decide what to do with that fourth

0:01:04.760 --> 0:01:06.760
<v Speaker 3>quarter EPs. Miss I will say that this is a

0:01:06.760 --> 0:01:09.200
<v Speaker 3>stock that needed some good news. You think about how

0:01:09.200 --> 0:01:11.640
<v Speaker 3>it's been performing over the past year or so, higher

0:01:11.680 --> 0:01:14.880
<v Speaker 3>by just about five percent eight percent when you take

0:01:14.880 --> 0:01:17.720
<v Speaker 3>a look at total return, that is far under performing

0:01:17.720 --> 0:01:19.440
<v Speaker 3>what we're seeing out of some of the other chip

0:01:19.480 --> 0:01:22.000
<v Speaker 3>makers and what we're seeing in tech overall.

0:01:22.240 --> 0:01:24.760
<v Speaker 4>Not a lot of commentary from Aviv Alan, the chairman,

0:01:24.800 --> 0:01:27.920
<v Speaker 4>president and CEO of Texas Instruments, just calling out that

0:01:27.959 --> 0:01:31.440
<v Speaker 4>revenue decrease seven percent sequentially, but increased ten percent from

0:01:31.440 --> 0:01:34.880
<v Speaker 4>the same quarter a year ago. Over the past twelve months,

0:01:35.120 --> 0:01:37.480
<v Speaker 4>we invested three point nine billion dollars in R and

0:01:37.520 --> 0:01:40.880
<v Speaker 4>D and SGNA invested four point six billion and capex

0:01:40.920 --> 0:01:43.280
<v Speaker 4>and returned six point five billion dollars.

0:01:42.959 --> 0:01:45.200
<v Speaker 5>To you owners. Yeah, I'm just looking at a free cash

0:01:45.200 --> 0:01:47.920
<v Speaker 5>flow for the fourth quarter one point three to three billion.

0:01:47.920 --> 0:01:51.680
<v Speaker 5>That's up sixty five percent year over year, so a

0:01:51.720 --> 0:01:54.000
<v Speaker 5>big move there. R and D expenses are up about

0:01:54.040 --> 0:01:57.360
<v Speaker 5>six point one percent year over year, coming in a

0:01:57.360 --> 0:01:59.600
<v Speaker 5>little bit lighter, actually a little bit above with the

0:01:59.640 --> 0:02:03.040
<v Speaker 5>street expecting. So just keeping an eye on that one.

0:02:03.080 --> 0:02:05.440
<v Speaker 5>Still up about three point three percent, and it's actually

0:02:05.560 --> 0:02:07.080
<v Speaker 5>up for the year. I think it's up about nine

0:02:07.200 --> 0:02:09.880
<v Speaker 5>or ten percent already here in twenty twenty six, so

0:02:09.960 --> 0:02:12.519
<v Speaker 5>looking to build on that gain, Roommain, Yeah.

0:02:12.480 --> 0:02:14.320
<v Speaker 1>Just real quickly. I just want to check in on Corvo,

0:02:14.320 --> 0:02:17.040
<v Speaker 1>a much smaller cab company, but the shares down eleven percent,

0:02:17.120 --> 0:02:19.959
<v Speaker 1>also in the chips space, more so for the mobile

0:02:20.000 --> 0:02:23.200
<v Speaker 1>business here, the company saying that adjusted EPs did beat

0:02:23.240 --> 0:02:26.520
<v Speaker 1>in this fiscal third quarter. It looks like adjusted revenue

0:02:26.560 --> 0:02:29.040
<v Speaker 1>also beat here, but the guidance light seven hundred and

0:02:29.120 --> 0:02:31.520
<v Speaker 1>seventy five million to eight hundred and twenty five million

0:02:31.760 --> 0:02:34.640
<v Speaker 1>for the fiscal fourth quarter revenue, the street on average

0:02:34.720 --> 0:02:38.800
<v Speaker 1>is looking for nine hundred and four million dollars shares

0:02:38.840 --> 0:02:39.640
<v Speaker 1>down about ten percent.

0:02:39.720 --> 0:02:41.920
<v Speaker 5>All right, guys, let's go do some of the individual gainers.

0:02:41.960 --> 0:02:44.160
<v Speaker 5>Just want to mention Corning, which at its highs was

0:02:44.240 --> 0:02:46.720
<v Speaker 5>up twenty percent in today's session, finishing with a gain

0:02:46.760 --> 0:02:49.680
<v Speaker 5>of about sixteen percent. I think it's the number one

0:02:49.680 --> 0:02:52.840
<v Speaker 5>gainer in the S and P five hundred on this Tuesday.

0:02:53.280 --> 0:02:56.320
<v Speaker 5>This after the company announced a multi year, up to

0:02:56.560 --> 0:03:00.320
<v Speaker 5>six billion dollar agreement with Meta Platforms to supply optical, fiber,

0:03:00.440 --> 0:03:04.200
<v Speaker 5>cable and connectivity solutions from Meta's advanced data center, supporting

0:03:04.200 --> 0:03:07.200
<v Speaker 5>its AI ambition so an ai play as we know

0:03:07.360 --> 0:03:10.200
<v Speaker 5>they're Corning, by the way, CNBC pointing this out, which

0:03:10.280 --> 0:03:14.160
<v Speaker 5>reported the deal initially earlier today, saying Corning is expanding

0:03:14.200 --> 0:03:16.520
<v Speaker 5>its facility to cater to rising demand from the likes

0:03:16.560 --> 0:03:20.600
<v Speaker 5>of Meta and Vidia, Open Ai, Google, Amazon, and Microsoft,

0:03:20.840 --> 0:03:24.240
<v Speaker 5>and that stock has certainly been quite an outperformer in

0:03:24.280 --> 0:03:27.880
<v Speaker 5>today's such as session. In today's trading, I should say,

0:03:27.960 --> 0:03:29.799
<v Speaker 5>or actually a year to date. I'll get it there.

0:03:29.800 --> 0:03:33.080
<v Speaker 5>Eventually it does report earnings before the market open tomorrow.

0:03:33.440 --> 0:03:37.000
<v Speaker 5>We are waiting Seagate, which is expected to report any moment.

0:03:37.040 --> 0:03:39.120
<v Speaker 5>It's the number four gainer in the S and P

0:03:39.360 --> 0:03:42.560
<v Speaker 5>five hundred, top performing the S and P five hundred

0:03:43.000 --> 0:03:45.800
<v Speaker 5>last year, and you can see that name actually up

0:03:45.920 --> 0:03:48.560
<v Speaker 5>about four and a half percent in today's session. Analysts

0:03:48.560 --> 0:03:52.280
<v Speaker 5>have been raising their price targets ahead of earnings today

0:03:52.760 --> 0:03:56.120
<v Speaker 5>in the last few days, and today Muzuho Mizuho Securities

0:03:56.200 --> 0:03:59.920
<v Speaker 5>raise the target on Cgate to four hundred from three seventy,

0:04:00.200 --> 0:04:03.280
<v Speaker 5>maintaining its outperform rating, and the stock is already up

0:04:03.280 --> 0:04:05.400
<v Speaker 5>about forty percent year to date. I don't think it's

0:04:05.440 --> 0:04:08.200
<v Speaker 5>out yet, but it should be reporting shortly and then

0:04:08.360 --> 0:04:12.080
<v Speaker 5>HCA Healthcare up about seven percent here at the close today,

0:04:12.320 --> 0:04:17.040
<v Speaker 5>I believe to a record close in today's session, shares

0:04:17.080 --> 0:04:21.000
<v Speaker 5>gaining after the company reported better than expected guidance, easing

0:04:21.080 --> 0:04:26.080
<v Speaker 5>investor concerns about expiring affordable care accebsidiaries or subsidies, I

0:04:26.080 --> 0:04:28.719
<v Speaker 5>should say. And so that's stuck up about seven percent, Katie,

0:04:28.720 --> 0:04:29.680
<v Speaker 5>I think we have Cgate out.

0:04:29.760 --> 0:04:31.960
<v Speaker 3>We certainly do. Let's take a quick look at what's

0:04:31.960 --> 0:04:35.680
<v Speaker 3>going on with Cgate reporting that second quarter revenue came

0:04:35.720 --> 0:04:38.320
<v Speaker 3>in at two point eight three billion dollars, a slightly

0:04:38.320 --> 0:04:41.400
<v Speaker 3>ahead of estimates of two point seventy five billion dollars

0:04:41.440 --> 0:04:44.039
<v Speaker 3>for their adjusted EPs. That was a beat as well,

0:04:44.040 --> 0:04:47.200
<v Speaker 3>coming in at three dollars and eleven cents for the

0:04:47.240 --> 0:04:49.839
<v Speaker 3>second quarter. The estimate had come in at two dollars

0:04:49.839 --> 0:04:52.320
<v Speaker 3>and eighty three cents. You can see the negative reaction

0:04:52.440 --> 0:04:54.880
<v Speaker 3>there as well. Looking for more detail, but have to

0:04:54.920 --> 0:04:57.880
<v Speaker 3>imagine that comes down to the forecast because taking a

0:04:57.920 --> 0:05:01.640
<v Speaker 3>look at the second quarter results, certainly a lot of

0:05:01.640 --> 0:05:02.400
<v Speaker 3>good news there.

0:05:02.640 --> 0:05:04.920
<v Speaker 4>No, it's up thirty five percent year to date, so

0:05:05.279 --> 0:05:07.440
<v Speaker 4>a little bit of a decline on the day today

0:05:08.200 --> 0:05:11.720
<v Speaker 4>with these earnings down three point two percent, after hours. Hey,

0:05:11.760 --> 0:05:13.400
<v Speaker 4>speaking of stocks that are lower, let's take a look

0:05:13.400 --> 0:05:16.760
<v Speaker 4>at some decliners today, Katie, you mentioned health insurance companies

0:05:16.760 --> 0:05:20.120
<v Speaker 4>weighing on the trade today certainly saw that, with United Healthcare,

0:05:20.200 --> 0:05:23.240
<v Speaker 4>CVS and Humanity United down nine point nineteen point six percent,

0:05:23.560 --> 0:05:26.480
<v Speaker 4>CBS down fourteen percent, human had down more than twenty

0:05:26.640 --> 0:05:29.960
<v Speaker 4>one percent. This after the US proposed holding payments to

0:05:30.279 --> 0:05:34.839
<v Speaker 4>private medicare plans flat next year. United Health sees first

0:05:34.880 --> 0:05:38.760
<v Speaker 4>annual revenue drop in more than thirty years. Also, shares

0:05:38.800 --> 0:05:41.360
<v Speaker 4>of Jet Blue took a leg lower today. The company

0:05:41.400 --> 0:05:45.680
<v Speaker 4>reported a wider loss than expected last quarter. It's challenging

0:05:45.880 --> 0:05:48.480
<v Speaker 4>its strategy to win over high paying customers as far

0:05:48.480 --> 0:05:51.360
<v Speaker 4>as the numbers go. Adjusted loss of forty nine cents

0:05:51.400 --> 0:05:53.600
<v Speaker 4>per share three cents worse than the average analyst estimate.

0:05:53.680 --> 0:05:56.440
<v Speaker 4>Shares of Jet Blue down six point nine percent today.

0:05:56.440 --> 0:05:59.960
<v Speaker 4>Operating revenue did come in slightly ahead of Wall Street expectations,

0:06:00.360 --> 0:06:03.880
<v Speaker 4>and finally, shares a Pinterest fell today. The company's laying

0:06:03.920 --> 0:06:07.000
<v Speaker 4>off less than fifteen percent of its workforce. It plans

0:06:07.000 --> 0:06:09.320
<v Speaker 4>to reduce office space as part of a global restructuring.

0:06:09.360 --> 0:06:12.480
<v Speaker 4>Shares fel today by nine point six percent. It does

0:06:12.560 --> 0:06:14.359
<v Speaker 4>expect the actions to be completed by the end of

0:06:14.360 --> 0:06:16.960
<v Speaker 4>the third quarter and sees about thirty five to forty

0:06:16.960 --> 0:06:20.360
<v Speaker 4>five million dollars in pre tax restructuring charges. Pinterest down

0:06:20.440 --> 0:06:21.600
<v Speaker 4>nine point six percent.

0:06:22.960 --> 0:06:27.000
<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

0:06:27.080 --> 0:06:29.640
<v Speaker 2>us throughout the day for the latest roundup of companies

0:06:29.720 --> 0:06:32.800
<v Speaker 2>making news on Wall Street and for the latest market

0:06:32.839 --> 0:06:37.320
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:06:37.400 --> 0:06:40.919
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:06:40.960 --> 0:06:42.480
<v Speaker 2>the Bloomberg Business app.