Avis equity had to be halted multiple times today after the rental car company’s stock spiked this morning, following yesterday’s release of strong 3Q21 earnings. Sources are speculating a short squeeze might be in play. The equity traded today at USD 535 per share on a USD 27.2bn market cap, up 212% from yesterday’s close.…
Ford Motor Co’s debt and equity rose today after the automaker increased guidance for FY21 adjusted EBIT, despite reporting a dip in 3Q21 earnings yesterday after the close. The company also reinstated its quarterly dividend. The company raised FY21 adjusted EBITDA guidance to USD 10.5bn – USD 11.5bn, from previous expectations of USD 9bn –…
Despite reporting better-than-expected 3Q21 revenue, Six Flags equity dipped today after the amusement park operator disclosed a slow recovery in park attendance. The company recorded attendance during the quarter of 12m guests, down 2m compared to 3Q19 due to diminished recovery in pre-booked groups such as school groups. Excluding pre-booked groups, attendance at the company’s parks in…
Dana equity and debt weakened after the auto parts supplier lowered full-year EBITDA guidance for FY21 due in part to rising commodity inflation. The company now estimates FY21 adjusted EBITDA to total USD 815m to USD 875m, with a margin of roughly 9.5%, compared to previous guidance of USD 920m to USD 1bn with a margin…
Read more Dana’s capital structure softens on revised 2021 EBITDA guidance — Market React
Hertz and Tesla stocks traded up this morning after Hertz announced its plans to purchase 100,000 Tesla vehicles as the rental car giant looks to build out its electric vehicle (EV) car rental fleet, according to a buysider and sellsider. The deal is estimated to total roughly USD 4.2bn in revenue, with completion targeted for the end of…
Read more Hertz and Tesla shares rise amid deal to electrify car rental fleet — Market React
While Southwest Airlines reported a less-than-expected revenue loss for 3Q21, its debt and equity softened as the airline revealed that flight cancellations cost the company USD 75m this month. The remaining effects of the Delta variant have also led to a USD 40m loss so far in October. For the quarter ended 30 September, the airline reported…
United Airlines’ debt and equity shared a mostly muted reaction to yesterday’s 3Q21 results driven by investor hesitation on when the airline sector will see a full return to business and international travel, as well as the impact of increasing fuel cost, said a buysider and a sellsider. The company raked in USD 7.8bn of…
Handicapping cash flow for Tier 1 auto suppliers can been a tricky exercise, given their direct exposure to the semiconductor shortage plaguing the auto industry. Still, a number of these Tier 1 players are armed with robust liquidity coffers, which is helping to keep trading levels from capsizing, according to two sources following the situation.…
Read more Tier I auto suppliers’ liquidity in focus amid chip shortage – Market React
The GEO Group’s debt moved up after a federal appeals court ruled on Tuesday that a California state law that would weed out private detention facilities cannot be enforced because it conflicts with the federal government’s authority over immigration. The 2-1 decision from the 9th U.S. Circuit Court of Appeals overturned a District Court ruling that…
Read more The GEO Group debt rises as appeals court rules in favor of private prisons – Market React
Service King paid its USD 14.8m bond interest payment due today (1 October) on its 7.875% bond, according to three sources familiar with the matter. Today’s payment comes shortly after the collision center company PIK’d a portion of a USD 15m interest payment that was due to the lenders on 22 September, opting to fund the…
Farhin Lilywala 