Gapping down
In reaction to disappointing earnings/guidance:
- SAVE -11.5% (also commences stock offering), SEDG -11.1%, PING -8.7%, EPR -8.3%, SONO -8.1% (also introduces premium smart soundbar product, Sonos Arc), CVNA -7.4%, VSTO -7.2%, FOLD -7.1%, BFAM -7%, ALDX -6.8%, AYX -6.7%, LGND -6.4%, DDD -5.4%, SRPT -5.3%, LCI -5.2%, ELAN -5.1%, ETSY -5%, EXAS -4.8%, MMS -4.2%, GRUB -4%, TTGT -3.9%, NDLS -3.7%, AZPN -3.6%, QTWO -3.3%, ANSS -3%, COMM -3%, PAAS -2.7%, WELL -2.6%, DCP -2.5%, ZNGA -2.5%, RNG -2.4%, REZI -2.3%, BEAT -2.2%, OGE -2.1%, INVH -2%, HII -1.7%, SQ -1.6%, WYNN -1.6%, CCMP -1.6%, HL -1.6%, STAY -1.5%, RP -1.3%, EPAM -1.3%, CTL -1.2%, UPWK -1.1%, HR -1%, QGEN -1%, BHC -1%, KRO -0.9%, DISH -0.7%
Other news:
- SLDB -9.4% (provides update regarding FDA clinical hold on IGNITE DMD Phase I/II clinical trial; study remains on hold)
- VAPO -4% (prices offering of 3.35 mln shares of common stock at $26.00 per share)
Analyst comments:
- CMP -1.1% (downgraded to Neutral from Overweight at JP Morgan)
- SHOP -0.8% (downgraded to Equal Weight from Overweight at Wells Fargo)
Gapping up
In reaction to strong earnings/guidance:
- TWLO +27.4%, BRKR +26.5%, FSLY +21.5%, PTON +16.9%, LYFT +16.8%, MRNA +16.6%, ANGI +15.7%, VG +14.8%, WPX +11.5%, LVGO +11.3%, NTRA +11.3%, PPD +10.5%, NUS +10.4%, TEVA +10.3%, GDP +10.1%, RCII +9.7%, AAN +9.4%, PYPL +9.3% (on call co refers to April as probably its best month since its IPO), NMIH +9.2%, BNFT +9.1%, TROX +8.9%, LNC +8.4%, GCI +7.5%, KRTX +6.9%, FTNT +6.8%, CNP +6.8%, XEC +6.6%, ZIXI +6.2%, GDDY +6%, IRM +6%, ENDP +6%, AMP +5.8%, EPAY +5.6%, EXR +5.5%, VIRT +5.5%, LAMR +5.4%, RTX +5.2%, IT +4.3%, CNQ +4.1%, REYN +4%, CCOI +4%, GBT +3.9%, HIMX +3.9%, FOXA +3.8%, FORM +3.8%, MRO +3.6%, LASR +3.6%, CRL +3.6%, AVXL +3.6%, BUD +3.5%, HLT +3.1%, CXW +2.9%, WTS +2.8%, QDEL +2.8%, BCE +2.7%, AES +2.6%, EQT +2.5%, ABEV +2.4%, FRT +2.3%, ESPR +2.2%, GTN +2.1%, CF +2%, BMY +2%, MET +1.9%, CDAY +1.9% (also announces it will acquire Excelity Global Solutions), ABC +1.8%, MUR +1.7% (also relocates corporate HQ to Houston, consolidating activities amid industry oil price collapse), NBIX +1.7%, PLUG +1.7%, HAIN +1.6%, HUBS +1.5%, PXD +1.4%, KALA +1.3%, CW +1.2%, H +1.2%, MIDD +1.2%, TWO +1.1%, AWK +1.1%, XEL +1.1%, HES +1.1%, CTVA +1%, PENN +1%
Other news:
- OVID +12.8% (announces topline results from the signal-finding Phase 2 ROCKET trial of OV101)
- LBTYA +7% (Liberty Global and Telefonica SA (TEF) announce agreement to merge their operating businesses in the U.K. to form a 50:50 joint venture)
- GNMK +6.9% (prices offering of 7,253,886 shares of common stock at $9.65 per share)
- DXCM +6.4% (to join S&P 500)
- STOR +5.3% (to join S&P MidCap 400)
- CDXS +4.5% (announces technology transfer milestone with NVS)
- CCL +2% (Princess Cruises extends pause of global ship ops thru 2020 summer season)
- TVTY +1.9% (to explore strategic alternatives for its Nutrition business)
- CRM +1.7% (to join S&P 100)
- CPRI +1.1% (to join S&P SmallCap 600)
Analyst comments:
- OXY +4.9% (upgraded to Hold from Sell at SunTrust)
- TPR +3.2% (upgraded to Buy from Hold at HSBC Securities)
- GM +1.6% (upgraded to Buy from Hold at Deutsche Bank)
Early premarket gappers
- Gapping up:
- TWLO +25.9%, FSLY +25.7%, KRTX +19.9%, NUS +16.2%, PTON +15.4%, ANGI +15%, LYFT +13.8%, TLND +11%, GDP +10.1%, RCII +9.7%, NTRA +9.5%, BNFT +9.1%, TROX +8.9%, PYPL +8.7%, LNC +8.4%, LASR +8.3%, WPX +8%, FTNT +8%, AMP +7.3%, EXR +7.2%, ENDP +6.9%, LVGO +6.7%, GDDY +6.7%, XEC +6.6%, PPD +6.4%, STOR +5.2%, TIVO +5%, CDAY +4.9%, DXCM +4.8%, CDXS +4.5%, CUB +4.5%, MRO +4.3%, NMIH +4.3%, HIMX +3.9%, FORM +3.8%, VIRT +3.6%, FOXA +3.5%, WTS +2.8%, COMM +2.8%, MET +2.6%, AES +2.6%, HLT +2.4%, FRT +2.3%, ESPR +2.2%, BRKR +2.1%, CXW +2.1%, GTN +2.1%, AMED +2%, CF +2%, TVTY +1.9%, QDEL +1.9%, NBIX +1.7%, CRM +1.6%, TMUS +1.5%, BUD +1.5%, CCL +1.4%, PXD +1.4%, IRM +1.3%, APA +1.2%, CW +1.2%, H +1.2%, EQT +1.2%, AWK +1.1%, FNV +1.1%
- Gapping down:
- SAVE -12.9%, RUN -11.8%, EPR -11.2%, AYX -9%, SEDG -8.8%, PING -8.4%, SONO -8.1%, BFAM -7%, LCI -6.7%, VAPO -6.4%, LGND -6.4%, ETSY -6.1%, CVNA -5.7%, ZNGA -5.4%, SRPT -5.3%, INSG -4.2%, EXAS -4.1%, DDD -3.9%, TTGT -3.9%, NDLS -3.7%, RNG -3.7%, AZPN -3.6%, SQ -3.4%, CEMI -3.3%, QTWO -3.3%, DCP -3%, ALB -3%, WELL -2.8%, WYNN -2.8%, REZI -2.3%, ANSS -2.3%, EAT -2.2%, INVH -2%, GRUB -1.9%, HL -1.9%, CTL -1.7%, CCMP -1.6%, STAY -1.5%, RP -1.3%, EPAM -1.3%, PAAS -1.1%, HR -1%
Videoconferencing hit delivers biggest ever Nordic software IPO
Pexip forms a bright spot in otherwise bleak European IPO market
Investors are lining up for stakes in a Norwegian videoconferencing company whose technology is used by Vodafone, Amnesty International and Spotify, in an otherwise bleak landscape for initial public offerings in Europe.
Oslo-based Pexip is aiming to raise Nkr2.4bn ($230m) in what will be the largest Scandinavian software IPO on record, valuing the company at Nkr6.4bn.
Pexip has reported a large increase in customer numbers during the coronavirus lockdown as millions of people across the globe turn to videoconferencing platforms to connect with clients, colleagues and friends.
The company — whose software has been adopted by Irish courts and by the US Department of Veterans Affairs for patient-doctor meetings — has positioned itself as a secure alternative to its main rival, Zoom, which has come under fire in recent weeks over privacy breaches.
According to Odd Sverre Østlie, the company’s chief executive officer, Pexip has seen “tremendous interest so far” from investors in the US, UK, Germany, France and the Nordic area.
The virtual nature of the roadshow — conducted using Pexip software — has allowed the company to woo investors across 15 cities rather than the normal one or two, he said.
“Covid-19 has created a lot of awareness from investors and the public in general that video is not a bad way of doing meetings,” said Mr Østlie, adding that the IPO was already oversubscribed.
“Society is gearing up for more digitisation,” he said.
The company is pitching to a generally lacklustre IPO market, in which volatile conditions have caused several company executives to shelve plans for listings. Just 22 companies have gone public in Europe so far this year, raising $1.2bn, according to Dealogic data. That compares with 38 debuts over the same period last year, which raised a total of $7.5bn.
“Despite the broader IPO climate being a bit dull, the Nordic tech miracle is still on fire,” said Carl Armfelt, founder and head of investments at TIN Fonder, a cornerstone investor in the Pexip IPO. The company is “growing fast but they are actually profitable, unlike many companies following the US model,” he said.
Pexip’s revenue — almost all of which is subscription-based — rose by 72 per cent in 2019 to NKr370m, while its earnings before interest, tax, depreciation and amortisation more than doubled to NKr76m.
This year its first-quarter recurring revenues doubled over the same period in 2019.
Pexip is due to start trading on the Oslo stock exchange on May 14.
Air France-KLM expects to burn through €400m in cash a month
Airline forecasts capacity will be almost wiped out in the second quarter
Air France-KLM expects its capacity to be almost wiped out in the second quarter, when it forecasts it will burn through €400m in cash a month as the coronavirus pandemic hobbles the global airline industry.
The French-Dutch airline expects to spend millions of euros in the April-to-June period despite cost-cutting measures such as the extensive use of government partial unemployment schemes that is saving it €350m a month.
The group, which was formed by the merger of Air France and KLM of the Netherlands in 2004, expects capacity to be down 95 per cent in the second quarter and 80 per cent in the third, compared with a year earlier. It said it did not see demand recovering “to pre-crisis levels before several years”.
Air France-KLM reported its operating loss in the first three months of the year, when only two weeks showed the effects of the coronavirus lockdown, increased to €815m, from €515m a year earlier.
In the first quarter, revenue fell 15.5 per cent over the same period last year to €5bn while the group’s net loss increased from €324m to €1.8bn, driven in part by a fuel hedging loss of €455m.
The entire airline sector is struggling as lockdowns push down revenues while costs remain high. As job cuts loom, companies have gone to governments for help.
Air France-KLM confirmed last month that it had won a €7bn loan package from the French government to help it through the crisis while the Dutch government had pledged between €2bn and €4bn.
Air France-KLM predicted “significantly negative” earnings over the full year and “a significantly higher current operating income loss in the second quarter than in the first quarter 2020”.
Ben Smith, chief executive, is to present a “new transformation plan” for the group this summer.
The French government has linked its help to cutting emissions, with domestic flights on the chopping board where trains are an alternative option.
However, as Daniel Roeska at Bernstein pointed out, discussion of “environmental measures and other operational restrictions being proposed and discussed by politicians, and how the group might need to adjust to adapt” were “conspicuous by its absence” in the first quarter.