| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2018 > News item |
Morning Commentary: Restoration Hardware convertible notes jump on earnings beat
By Abigail W. Adams
Portland, Me., Dec. 4 – The convertibles secondary space was quiet early in Tuesday’s session with market players eyeing gyrating equity markets that gave up most of their gains from Monday’s session.
The Dow Jones industrial average opened the day down about 155 points with trade war jitters returning due to the ambiguity surrounding the details of the trade war truce the U.S. and China agreed to during the G20 summit.
While volume in the secondary space was light, Restoration Hardware’s convertible notes were in focus and making gains on an outright and dollar-neutral basis after a third-quarter earnings beat.
The home furnishing company’s 0% convertible notes due 2023 rose more than 12 points to break par in early trading.
They were improved about 0.5 point dollar-neutral depending on the hedge, a market source said.
The 0% notes, which priced at par in June, were previously trading in the 88 range. Tuesday marked the first time the notes have broken par since August, according to Trace data.
The company’s 0% convertible notes due 2020 were also making gains on an outright and dollar-neutral basis. The notes jumped about 18 points outright. They were seen at 130.25 bid, 131 offered versus a stock price of $142.00, a market source said.
The 0% notes were also up about 0.5 point dollar-neutral.
The company’s stock climbed more than 15% early in Tuesday’s session on a positive earnings report.
Restoration hardware reported non-GAAP earnings per share of $1.73 versus analyst expectations of earnings per share of $1.27.
Revenue was $638.5 million versus analyst expectations for revenue of $632.6 million.
The company’s fourth-quarter guidance of earnings per share of $2.75 to $2.90 also exceeded analyst expectations with the projection for earnings per share of $2.51.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.