1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,400 --> 00:00:18,160 Speaker 1: Let's take a look at some stocks on the move today. 5 00:00:18,160 --> 00:00:21,680 Speaker 1: I'm Nathan Hager, joined by Bloomberg's Dan Curtis, watching Netflix 6 00:00:21,760 --> 00:00:25,280 Speaker 1: shares move lower and lower still after earnings. 7 00:00:25,320 --> 00:00:28,800 Speaker 3: Good morning, Good morning, Nathan. Yeah, that's a continue to 8 00:00:28,840 --> 00:00:31,120 Speaker 3: sell off for Netflix in the pre market. Those shares 9 00:00:31,200 --> 00:00:34,559 Speaker 3: under ticker and flx are down seven percent in the 10 00:00:34,560 --> 00:00:37,879 Speaker 3: pre market. They've already taken a thirty percent hit from 11 00:00:37,880 --> 00:00:39,640 Speaker 3: when the company announced it was going to make a 12 00:00:40,280 --> 00:00:43,440 Speaker 3: bid in for Warner Brothers. But let's go into what 13 00:00:43,520 --> 00:00:46,479 Speaker 3: they reported. A lot of the focus is on the 14 00:00:46,560 --> 00:00:49,919 Speaker 3: costs for this year. So Netflix said it's going to 15 00:00:50,080 --> 00:00:53,239 Speaker 3: increase its spending on film and TV shows. Good for 16 00:00:53,360 --> 00:00:56,600 Speaker 3: viewers potentially who want more content, bad for the bottom line. 17 00:00:56,680 --> 00:00:59,640 Speaker 3: That's going to be about twenty billion dollars in total, 18 00:01:00,120 --> 00:01:03,240 Speaker 3: the Warner Brothers deal. It sees another two hundred and 19 00:01:03,240 --> 00:01:07,080 Speaker 3: seventy five million being spent on that this year. That's 20 00:01:07,080 --> 00:01:09,760 Speaker 3: on top of sixty million dollars spent last year. In 21 00:01:09,840 --> 00:01:12,319 Speaker 3: order to pay for all of this, it's pausing buybacks 22 00:01:12,360 --> 00:01:15,800 Speaker 3: to bolster cash. It also offered projections for the current quarter. 23 00:01:15,840 --> 00:01:18,320 Speaker 3: It said twelve point two billion dollars in sales that 24 00:01:18,440 --> 00:01:21,360 Speaker 3: is on target, but all the extra spending it's going 25 00:01:21,360 --> 00:01:24,800 Speaker 3: to is bringing the forecast of seventy six cents per 26 00:01:24,840 --> 00:01:28,200 Speaker 3: share for earnings underneath what Wall Street was expecting. So 27 00:01:28,240 --> 00:01:30,720 Speaker 3: a law of attention on the spending for the fourth 28 00:01:30,800 --> 00:01:33,399 Speaker 3: quarter results themselves. So what they what they did just 29 00:01:33,480 --> 00:01:36,080 Speaker 3: going int the end of last year, not too bad 30 00:01:36,400 --> 00:01:39,000 Speaker 3: at the just at a quick glance, twelve point one 31 00:01:39,040 --> 00:01:42,240 Speaker 3: billion of sales, fifty six cents per earnings per share, 32 00:01:42,440 --> 00:01:45,440 Speaker 3: both of those above estimates. Three hundred and twenty five 33 00:01:45,480 --> 00:01:48,560 Speaker 3: million subscribers, up eight percent from prior year, so some 34 00:01:48,600 --> 00:01:51,320 Speaker 3: growth on that, but the spending this year really catching 35 00:01:51,640 --> 00:01:53,000 Speaker 3: the trade this morning. 36 00:01:52,840 --> 00:01:55,480 Speaker 1: And we got earnings just this morning from Johnson and 37 00:01:55,560 --> 00:01:57,680 Speaker 1: Johnson that's looking like maybe a more positive story. 38 00:01:58,320 --> 00:02:01,520 Speaker 3: Yeah, those shares are down two percent. They've actually come 39 00:02:01,560 --> 00:02:04,880 Speaker 3: off the pre market low, so Jay and Jay down 40 00:02:05,200 --> 00:02:08,239 Speaker 3: one point eight percent in pre market. The drug maker 41 00:02:08,440 --> 00:02:12,400 Speaker 3: reported fourth quarter sales that grew nine percent to twenty 42 00:02:12,440 --> 00:02:15,840 Speaker 3: four point six billion dollars that beat estimates. Earnings were 43 00:02:15,880 --> 00:02:19,399 Speaker 3: two dollars and forty six two dollars and forty six 44 00:02:19,440 --> 00:02:22,919 Speaker 3: cents per share. That's a penny shy. Sales for this 45 00:02:23,000 --> 00:02:24,959 Speaker 3: year will be one hundred billion dollars, which is near 46 00:02:25,040 --> 00:02:28,000 Speaker 3: average analyst estimates and a lot of focus on this 47 00:02:28,080 --> 00:02:31,040 Speaker 3: company because the guidance indicates that the company will do 48 00:02:31,160 --> 00:02:34,720 Speaker 3: well under President Trump, even after it cut prices to 49 00:02:34,760 --> 00:02:37,720 Speaker 3: appease him. The CEO said that concessions added up to 50 00:02:37,880 --> 00:02:40,760 Speaker 3: hundreds of millions of dollars. But J ANDJ does have 51 00:02:40,840 --> 00:02:43,560 Speaker 3: some new drugs coming to the including a cancer treatment, 52 00:02:43,760 --> 00:02:45,840 Speaker 3: so the growth there could help offset some of the 53 00:02:45,919 --> 00:02:48,720 Speaker 3: costs from cutting the prices. 54 00:02:49,040 --> 00:02:52,520 Speaker 1: And finally, just a coin of phrase, United Airlines still 55 00:02:52,560 --> 00:02:54,360 Speaker 1: getting a lift after earnings. 56 00:02:54,120 --> 00:02:57,360 Speaker 3: Ah yes, yes, shares taking off a bit. To continue 57 00:02:57,360 --> 00:03:00,280 Speaker 3: with that phrase, It reported fourth quarter earnings of three 58 00:03:00,320 --> 00:03:02,600 Speaker 3: dollars and ten cents that top the two dollars and 59 00:03:02,720 --> 00:03:06,399 Speaker 3: ninety two cents per share estimate. The demand there being 60 00:03:06,480 --> 00:03:10,600 Speaker 3: driven from premium domestic seats and international travel. That's something 61 00:03:10,639 --> 00:03:13,720 Speaker 3: we've heard from Delta already, so it looks like some strong, 62 00:03:14,200 --> 00:03:16,760 Speaker 3: strong spending from the from the upper side for the 63 00:03:16,800 --> 00:03:19,160 Speaker 3: fourth quarter. It did report two hundred and fifty million 64 00:03:19,160 --> 00:03:24,640 Speaker 3: dollars hit pre tax pre tax earnings because of the 65 00:03:24,720 --> 00:03:28,200 Speaker 3: US government shutdown, but overall, it's seeing twelve dollars to 66 00:03:28,240 --> 00:03:31,440 Speaker 3: fourteen cents twelve dollars to fourteen dollars a share this year, 67 00:03:31,480 --> 00:03:33,720 Speaker 3: which is just basically what Wall Street was looking at. 68 00:03:33,919 --> 00:03:35,760 Speaker 3: So that's helping lift the shares three and a half 69 00:03:35,760 --> 00:03:37,120 Speaker 3: percent in the pre market. 70 00:03:38,080 --> 00:03:42,120 Speaker 2: This stock mover's report from Bloomberg Radio. Check back with 71 00:03:42,200 --> 00:03:44,760 Speaker 2: us throughout the day for the latest roundup of companies 72 00:03:44,840 --> 00:03:47,920 Speaker 2: making news on Wall Street and for the latest market 73 00:03:47,960 --> 00:03:52,400 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 74 00:03:52,520 --> 00:03:56,040 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 75 00:03:56,080 --> 00:03:57,600 Speaker 2: the Bloomberg Business app.