Carnival's $1B Offering Sinks
And, Advance Auto Parts' outlook.
Today is Wednesday, November 16, 2022.
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Carnival's $1B Offering Sinks
Shares of Carnival (NYSE: CCL) dropped 13.71% in after-hours trading on Tuesday after the company rolled out a $1 billion convertible senior note offering.
Details: The senior notes, which are due in 2027, will be used as part of Carnival’s 2024 refinancing plan. Net proceeds will be used for making principal payments on debt and for general corporate purposes.
History: Carnival rolled out a $1 billion common stock offering in July, which also sent the stock down that day.
Stock Price: While Carnival’s stock is down 47% in 2022, shares are up 53% in the last 30 days as travel demand grows and bookings increase.
Final Thoughts: Investors assumed that Carnival didn’t need to take on more debt because business seemed to be better. Obviously, the company still has some refinancing issues.
Notable Earnings Today: Cisco Systems (Nasdaq: CSCO), ZIM Integrated Shipping Services (NYSE: ZIM), Nvidia (Nasdaq: NVDA), Target (NYSE: TGT), Lowe's (NYSE: LOW), Star Bulk Carriers (Nasdaq: SBLK), TJX Companies (NYSE: TJX), Sonos (Nasdaq: SONO), Golar LNG (Nasdaq: GLNG), Bath & Body Works (NYSE: BBWI), Arcos Dorados Holdings (NYSE: ARCO), Global-E Online (Nasdaq: GLBE), Tencent Holdings (OTCMKTS: TCEHY), America’s Car-Mart (Nasdaq: CRMT), Grab Holdings (Nasdaq: GRAB), Kulicke & Soffa (Nasdaq: KLIC), Bowlero (NYSE: BOWL), Manchester United (NYSE: MANU), Victoria's Secret (NYSE: VSCO).
Notable IPOs Today: Precision Optics Corporation, Inc. Common stock (Nasdaq: POCI), Adamas One Corp. Common Stock (Nasdaq: JEWL).
Notable Equity Crowdfunding Campaigns Ending Today: Broken Anchor Winery (SMBX), Sollievo Pharmaceuticals (StartEngine).
Notable Economic Events Today: Retail Sales (8:30 a.m. ET), Export Price Index / Import Price Index (8:30 a.m. ET), Industrial Production (9:15 a.m. ET), Business Inventories (10:00 a.m. ET), Retail Inventories Ex Auto (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), TIC Net Long-Term Transactions (4:00 p.m. ET).
Advance Auto Parts Sees Currency Problems
A disappointing outlook sent shares of Advance Auto Parts (NYSE: AAP) down 11.38% in after-hours trading on Tuesday.
Financials: Advance Auto Parts reported financial earnings of $2.84 per share and revenue of $2.6 billion; both were below estimates.
The Good: Net sales grew 0.8% due to improvements in strategic pricing and new stores.
The Bad: Comparable store sales decreased by 0.7% and the gross profit fell by 0.2%. The company attributed this sales reduction to an increased owned brand penetration.
Outlook: Advance Auto Parts lowered its full-year earnings per share guidance due to the impact of foreign currency headwinds.
Final Thoughts: The stock is down 22% this year. Advance Auto Parts is opening new stores to try to mitigate these financial challenges, but investors are not impressed.
Crypto Shrugs off BlockFi Rumors
Cryptocurrency platform BlockFi is preparing for a potential bankruptcy, according to The Wall Street Journal, and it could be the next crypto platform to fall.
Final Thoughts: Despite these reported rumors, most crypto prices ticked up on Tuesday. For bullish investors, this proves that crypto can survive anything.
Trends to Watch
New Leader: Uniswap Overtakes Coinbase as Second-Largest Exchange Trading Ethereum Today (Decrypt)
Going to Arizona: Apple Prepares to Get Made-in-US Chips in Pivot From Asia (Bloomberg)
Bad Sport: Layoffs hit Warner Bros. Discovery Sports, impacting roughly 10% of workforce (Awful Announcing)
Most Expensive Place on Earth: Disney World increases price of park tickets, annual passes (Orlando Sentinel)
Can’t Take Charge: Electric vehicles are less reliable because of newer technologies, Consumer Reports finds (CNBC)
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