Morning Commentary: Chegg convertible notes in focus as stock plummets post-earnings

By Abigail W. Adams

Portland, Me., May 3 – It was an active morning in the convertibles secondary space with a new disaster du jour to spark trading activity.

Chegg Inc.’s convertible notes were in focus as stock plummeted after the education technology company reported earnings.

Chegg’s 0% convertible notes due 2026 fell 4 points outright with stock off more than 30%.

The 0% convertible notes were changing hands at 73 early in the session.

There was $50 million in reported volume.

The 0.125% convertible notes due 2025 were down 4.375 points outright to trade at 84.5.

There was $30 million in reported volume.

Chegg’s stock was $17.06, a decrease of 31.71%, shortly before 11 a.m. ET.

Stock plummeted after the online education technology company reported earnings.

The company reported mixed earnings with a large beat on the bottom line but a slight miss on the top.

However, stock tumbled after the company lowered its forward guidance.

Chegg reported earnings per share of 32 cents versus analyst expectations for earnings of 24 cents.

Revenue was $202.24 million versus analyst expectations for revenue of $202.96 million.

The company reported that it is expecting to take a hit from rising inflation and lowered its full-year revenue guidance to $740 million to $770 million versus analyst expectations for revenue of $843 million.

© 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.