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Rivian's Early Sales Estimate

Rivian's Early Sales Estimate

Plus, Clorox's cybersecurity damage.

October 05, 2023

Photo by Clayton Cardinalli on Unsplash

Today is Thursday, October 5, 2023.

The Early Bird Index today is 52.51.

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Rivian's Early Sales Estimate

Shares of Rivian Automotive (Nasdaq: RIVN) sank 7.85% in after-hours trading on Wednesday after the electric vehicle company posted preliminary financial results.

Details: Rivian estimates that its revenue will be between $1.29 billion and $1.33 billion in the quarter that just ended. The problem is that Wall Street expected more revenue.

Also: To make up for the revenue shortfall, Rivian also announced a $1.5 billion green convertible senior note offering on Wednesday. The offer is for qualified institutional buyers.

Definition: As the name suggests, green notes are for projects that are environmentally friendly, such as cars that don’t produce emissions.

Background: It’s been an interesting week for Rivian. The company released numbers about car deliveries that were better than expected. Analysts also upgraded Rivian before the preliminary financial results.

Stock Price: Rivian is up 36% this year. In the last 30 days, the stock is only up about 1%.

Final Thoughts: There was some thought that the recent strike involving other automakers could benefit EV companies such as Rivian. But these results show that the stock is far from perfect.

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Notables

Notable Earnings Today: Levi Strauss (NYSE: LEVI), Constellation Brands (NYSE: STZ), Aehr Test Systems (Nasdaq: AEHR), Conagra (NYSE: CAG), Lamb Weston (NYSE: LW), CalAmp (Nasdaq: CAMP).

Notable IPOs Today: Maison Solutions Inc. Class A Common Stock (Nasdaq: MSS), La Rosa Holding Company Common Stock (Nasdaq: LRHC), JPMorgan U.S. Tech Leaders ETF (Nasdaq: JTEK), Goldman Sachs ETF Trust (NYSE Arca: GSC).

Notable Equity Crowdfunding Campaigns Ending Today: LIFT Aircraft (StartEngine), Smart Cups (StartEngine).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Trade Balance / Exports / Imports (8:30 a.m. ET).

Clorox's Cybersecurity Damage

Clorox Cleaner & Bleach (IG: @clay.banks)

Photo by Clay Banks on Unsplash

Clorox (NYSE: CLX) dropped by 2.91% in after-hours trading on Wednesday after the company revealed the financial hit from a previously disclosed cyberattack.

Details: As a result of the recent cyberattack, Clorox now expects net sales to decrease from 28% to 23%. And instead of a higher gross margin, Clorox now expects the gross margin to decrease.

Background: In August, Clorox announced that it suffered a cyberattack that caused a disruption in operations, including processing delays and product outages.

Also: Clorox anticipates ongoing, but lessening, operational impacts from the cyberattack this quarter.

Final Thoughts: Already down 7% this year, Clorox needs to turn things around. The company reports earnings in November.

BlackBerry to IPO IoT Business

BlackBerry (NYSE: BB) announced Wednesday that it will separate its IoT business away from its cybersecurity business, sending shares up by 4.22% in after-hours trading. This includes a plan to hold an initial public offering for the new IoT subsidiary.

Final Thoughts: This is a great way to get more value for investors. In last week’s earnings, it was clear that the IoT business was headed in a different direction than the cybersecurity business. BlackBerry is up 29% this year.