Closing Bell: Western Digital, Deckers Outdoors and Bloom Energy Report Earnings

0:02 Bloomberg Audio Studios.

0:04 Podcasts.

0:05 Radio. News. This is the closing bell on the Stock Movers Report. The companies making moves at the close of U.S. trading with Carol Masser, Tim Stenevek, Romain Bostic, and Katie Greifeld.

0:22 Western Digital, of course, the memory chip company now, memory storage company, excuse me, now out with its earnings. A knee-jerk reaction to the upside. as its fiscal first quarter net revenue comes in slightly above estimates, $ 4. 3 billion. The street was looking for roughly about $ 4. 2 billion. Adjusted EPS, $ 4. 64 a share. The street was looking for $ 4. 10, so a beat on both the top and bottom line. Inventory right now, as of the end of the last quarter, at about $ 1. 8 billion. And the company says that looking ahead to the next quarter, basically the current quarter that we're in right now, they expect revenue of $ 5. 1 billion, non-GAAP gross margin of 61%, and non-GAAP EPS of $ 5. 80.

1:04 Yeah, WDC is the ticker. I'm looking at movement in the aftermarket, guys, up about 3.8%. We're seeing investors pushing up shares of Western Digital. Stock for the year, Tim, is up about 105%.

1:16 Okay, shares of Western Digital up just about 3.8%.

1:17 First quarter adjusted EPS coming in at $ 4.

1:19 64.

1:19 The estimate was for $ 4. 10. Look, this is a good view on what the memory chip market is doing. The stock, as Carol mentioned, has absolutely been on a tear. But look what happened in Korea. That's where I'll point our attention because there have been some challenges with the memory chip makers there.

1:40 All right, guys.

1:40 We're waiting for some more earnings. In the meantime, let's go to some of the gainers. Let's go to a couple of airlines that definitely moved in today's session. We're talking about Southwest and American Airlines. Southwest, That stock up about 5.4%. That despite the company cutting its guidance for the full year due to soaring jet fuel costs. Despite that gloomier outlook, the airline posted better than expected quarterly adjusted earnings and operating revenue. The results offering an early indication that Wall Street sees Southwest's transformation as positioning the carrier.

2:10 for stronger returns as the industry contends with one of its biggest cost challenges in years. We know that things have been challenging, but investors liking what they got today. American, too, up almost 3%. They're it, too, cutting its full-year outlook again, issuing a wide range for fourth quarter loss target due to persistently higher fuel prices. We have a theme, everybody. Brightside, premium revenue increased by 23%. Main cabin revenue up 20% from a year earlier, so Airlines is a standout. And you're right. Ticker A-L-L-E. Romaine, you are right. Mark the state down. Allegiant, top in the S & P 500, up 11%. This, after the residential and commercial door lockmakers, full-year adjusted earnings per share guidance boost, surpassed Wall Street's expectations.

2:59 I mean, I don't even know the last time. A lockmaker. I know. Yeah. It's an interesting day in the bull market.

3:05 Uh, the BI analyst here, Mustafa, of course saying Allegiant guidance, lift cautious despite high quality beat. So, uh, Stocks up about 10% here today. A lot of it is because of what happened today. Hey, and then I just want to quickly mention Fannie Mae and Freddie Mac. Yep, both just trade for a few dollars a share, so keep that in mind when we talk percentages. But you did see Fannie Mae up about 12.5%, Freddie Mac up almost 15%. This, after Pershing Squares Bill Ackman made some comments on CNBC saying... It's, quote, absolutely politically critical for Fannie and Freddie to be released from conservatorship before the end of the Trump administration.

3:44 Surprise, right?

3:46 Yeah, we put forth a very straightforward plan that will get it done more efficiently. Hey, send your comments to Remain Boston, because I know people have strong feelings on that one.

3:56 I think people had strong feelings on shares of Meta today. I mean, shares of Meta were among the biggest decliners, down 7%. At what point it was down more than 8% today. This after Mark Zuckerberg told investors the company would bet even more aggressively on AI. Also, we saw today a measure of Meta's credit risk at a record high as plans to ramp up capital spending. reignited fears that tech giants will issue more debt for the AI build-up. Romain, I know you're watching some other stocks that are reporting in the after hours. What do you got for us?

4:23 Yeah, let's just do a quick check on Decker. Of course, the maker of Hoka and Ugg shoes, the knee-jerk reaction. 9% lower in the after-hours trade after the company said net sales came in at about $ 1. 48 billion. That's a little bit light. The street on average was looking for about $ 1. 51 billion. EPS, though, did come in at about $ 2. 31 a share, accelerating on a year-over-year basis, though, and operating income in the quarter also beating at about $ 389, we'll round it up to $ 390 million here. It does look like the sales number, though, is what everyone is focused on right now, A slight miss on that number here.

4:59 We'll dive a little bit deeper and try to figure out why.

5:02 Yeah, we'll add it all up. And investors don't like it, Romain. The stock down about 5.5% here in the aftermarket. Keep in mind, the stock has been under some pressure here in 2026, down about 18% year-to-date. 9%, almost 9% of the float, though, guys, is short. Yeah.

5:17 Another stock I do just want to check in on is Bloom Energy. It got caught up in the AI sell-off downdraft. Their earnings now coming out here, a beat pretty much on all of the key metrics here. Adjusted EPS at $ 0.

5:29 94.

5:29 The street was looking for $ 0. 68. Revenue at about $ 1. 24 billion. The street was looking for about $ 1. 1. Again, this is for the third quarter. Not seeing any guidance here, but obviously a critical player in the AI infrastructure build-out, basically provides a lot of these sort of singular hydrogen-powered power generation devices.

5:49 Yeah, if you look at how the company has done so far this year, shares are actually up 150% despite today's decline and then the after-hours decline. So going into this print, investors have been optimistic. To repeat some of these headlines, Bloom Energy, a third quarter adjusted earnings per share coming in above estimates at $ 0. 94, third quarter revenue beating estimates at $ 1. 24, third quarter adjusted EBITDA coming in above estimates at $ 299. 5 million.

6:15 The Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market-moving headlines, listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.