LinkedIn convertibles lose luster post-earnings; FireEye ticks up despite CFO departure

By Stephanie N. Rotondo

Phoenix, July 31 – Another round of earnings was the catalyst for some of Friday’s major movers in the convertible bond market.

LinkedIn Corp.’s 0.5% convertible notes due 2019, for instance, were seen falling as much as 7 points, according to a trader.

“The earnings, I guess, disappointed,” he said, quoting the issue in a 101 to 101.375 context.

By the bell, the notes were seen trading with a 100 handle, versus a stock price of $203.26.

The stock was off over 10.5% on the day.

The professional social media platform released its earnings after the close on Thursday. And while the figures beat estimates – and the stock initially ran up – investors were pulling back in Friday morning trading as a second glance indicated only “so-so” forward guidance.

For the quarter, earnings per share was 55 cents on sales of $712 million. Expectations were EPS of 33 cents on sale of $679.8 million.

Meanwhile, FireEye Inc.’s convertible bonds were inching higher following that company’s earnings release.

FireEye also announced Michael Sheridan, chief financial officer, was leaving his post.

A trader saw the 1% convertible notes due 2035 trading around 105, which was up from levels around 104.25 previously. He also pegged the 1.625% convertible notes due 2035 at 104 bid, 104.75 offered, up about a point.

The stock, however, was off about 6.85% at $44.49.

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