[music]

Bloomberg Audio Studios podcasts radio

news.

This is the closing bell on the stock

movers report. [music] The company's

making moves at the close of US trading

with Carol Masser, Tim [music] Stenc,

Roma Bostic, and Katie Grifeld.

>> Let's actually go to Autodesk first.

Autodesk crossing the wire. the

knee-jerk reaction uh for the software

maker down about 2% here. Adjusted EPS

uh did rise to about $3.30 uh

year-over-year from 262 the previous

year. Net revenue in the quarter about

in line with estimates at about 2.05

billion. The street was looking for

2.01. Billings in the quarter also

slightly above estimates at about 1.85

billion. The street overall was looking

for 1.81. Here's your forecast. Tim,

Autodesk saying that revenue for the

current quarter will be in a range of

2.13 to 2.14 billion. The street was

looking for 2.08.

>> Okay, that's Autodesk. I'm looking at

what's going on with Workday right now.

A lot of eyes on this company after what

happened today and yesterday with shares

of Salesforce. Workday second quarter

revenue does meet estimates. Shares in

the after hours up 2/10en of 1%. The

company sees fiscal year subscription

revenue coming between 9.94 billion to

9.95 billion. And the estimates for

$9.95 billion. So pretty much in line

there. The company sees fiscal year

adjusted operating margin at 31%. It saw

about 30.5% and the estimate was for

30.5%. Second quarter revenue coming in

above estimates ever so slightly at 2.65

billion. And the company sees third

quarter subscription revenue at $2.52

billion. Shares of workday down about

1.2%. Remember there was that interest

or reported interest earlier this year

from Silverlake that caused shares to

move higher.

>> Absolutely. here and of course not all

software companies are treated equal. We

talk about the big gainers on the day uh

Tim and Lisa and one of them was a

software name and I think where a lot of

folks are wondering whether we can take

sort of what was out of Salesforce uh

and maybe extrapolate into what we would

hear from Workday and Autodesk but

obviously uh every software company has

a little bit of a different take here on

how they fit into the AI story.

>> Yeah, we had a great conversation with

with Brody about this earlier. I mean we

were told there was going to be a SAS

apocalypse, right? Mhm.

>> And even though a gain like today we're

seeing with Salesforce with the stock up

more, you know, the most going back 6

years, it's still down around 5% on the

year. So it speaks to the challenges

that I think some investors in the

public markets still have when it comes

to the effect of these AI companies on

some of these cloud providers

>> or software providers.

>> Yeah. Well, I get it. Yeah. And it's

this idea though, too. It's like, okay,

well, if you're just sort of a

generalist in this space, maybe AI does

eat your lunch. If you're more

entrenched, which is sort of the

argument a Mark Benny off at Salesforce

would make that when you're more

entrenched into some of these enterprise

into some of these big corporations and

their enterprises, uh then maybe the AI

story isn't as much of a threat. But as

you said, uh the jury is still out.

Yeah, there's been a big rally in these

names today and over the last few weeks,

but all of these names are in the red.

>> It doesn't hurt to have Dario Amade join

you side by side to to talk about a

partnership between Anthropic, you know.

Oh, absolutely. what some people say is

like, okay, the company that is the

biggest threat to these SAS companies.

So, yeah, that doesn't that doesn't

hurt.

>> I I trust me, when I have my annual

review, I'm going to see if Daario can

join me. [laughter]

>> Maybe you might have to settle for

Claude. Bad news.

>> Claude. Okay. Who knows?

>> That's really the question though for

these software companies like can they

can they stay resilient in the age of

AI? Do they create their own AI product

or do they choose to partner uh with

other companies at least for Workday? uh

the C CFO saying in the results uh our

results reflect continued momentum

across the platform. AI emerging as a

strategic driver of customer expansion.

Look, it's not much to lift the shares

right now. The stock down about 4% now

uh in the after hours.

>> Two question also about um what these

companies are doing with cash. The

company authorizing an additional $4

billion in share buybacks. That's

workday. shares down in the after hours

still by 4.3%. Once again, fiscal year

uh adjusted operating margin, uh the

company sees fiscal year adjusted

operating margin coming in at 31%.

That's an increase of what it saw

earlier, which was 30.5%. Like you said

though, um with that narrowing of its

fiscal year subscription revenue

forecast, not doing much for for shares

in the after hours.

>> All right. Uh now, uh let's move on to

the chip space here and away from uh the

software space for a second. Marll's

earnings crossing the wire right now.

Second quarter revenue does beat

slightly 2.74 billion. The street was

looking for 2.71 on average adjusted EPS

94 cents a share. That's about a penny

above the average of street estimates.

Take a while here to dig in to try to

find the forecast, but overall the

company is saying at least on the

surface that it is expecting gross

margins of roughly about 58% which is

around what the street was looking for

here. So no real material up in that

margin guidance.

>> Okay, this is Marll Technology shares

down about 1.5% in the after hours.

These earnings, they continue to come.

Looking at shares of Ulta Beauty right

now and looking at headlines, the

company sees fiscal year earnings per

share coming in at 2870 to $29.

It saw 2836 to 28.880. Uh the company

sees fiscal year comp sales increasing

3.2% to 3.7%. That's an increase from

what it earlier saw, which was 2 1/2 to

3 1/2%. Shares of Ulta Beauty in the

after hours up about 2.8%. Looking

backwards, the company second quarter

earnings per share coming in above

estimates at $6.55

and second quarter comp sales coming in

way above estimates at 3.8%. The

estimate was for 2.44%. Ulta shares

higher by about 2.8%.

>> And it raises a lot of questions about

this idea of where consumer spending

stands. I mean, you think about just how

much of a mixed picture it's been out of

a lot of these consumerf facing and

retail companies. You have some

companies reporting great growth, others

still struggling. I thought it was

interesting when we had last week uh we

were talking on the program about

Walmart and the idea that, you know, a

company that actually raised its

guidance uh still got hit in the market

primarily because of that uh seemingly

potentially slowdown and some of that

sequential uh same store sales growth.

>> Yeah. And you think about where the

consumer is, it's really a mixed bag

remain. Like you said, we just had

Abberromia earnings uh the other day.

That stock blowing it out of the water.

Ulta Beauty, another consumer focused

name. Look, the read right now, at least

from the second quarter, uh is positive,

a positive read on the consumer. We do

still have to see that forecast though.

>> But did you guys see the results we got

this morning out of Dollar General and

Dollar Tree? Uh and this idea sort of of

like how you have two companies kind of

in the same space kind of moving in

different directions for different

reasons. And it gets to this idea. I

mean, we're beyond K-shaped or whatever

people are doing trying to describe this

economy. I think we just have to kind of

come up with a new letter or shape uh to

sort of uh, you know, characterize it

best.

>> Well, the Treasury Secretary would like

to see a C, right? Yeah. He calls it

C-shaped.

>> The Treasury Secretary, what's he up to

these days? We haven't heard from him in

a couple of days.

>> The Stock Movers [music] Report from

Bloomberg Radio. Check back with us

throughout the day for the latest

roundup [music] of companies making news

on Wall Street. And for the latest

market moving headlines, [music] listen

to Bloomberg Radio Live. Catch us on

YouTube, Bloomberg.com, and on Apple

CarPlay [music] and Android Auto with

the Bloomberg Business App.