Delta Air Lines, Inc. (DAL) stock fell 2% in the extended market after Delta announced it is issuing new debt to raise an additional $1.25 Billion and a 7.4% decline in regular trading Wednesday. Delta said on Wednesday, that the company doesn’t expect to satisfy minimum “fixed charge coverage ratios” for its debt obligations by early next year. The airline said it’s seeking to renegotiate its debt agreements, but warned that “our efforts to obtain such amendments may not be successful, which would lead to an event of default.”
Shares of American Airlines also fell 2% in extended trading. United Airlines’ stock also fell 2% in after-hours trading. United said Wednesday that passengers will have to answer a health self-assessment as they check-in for flights.
Royal Caribbean, Norwegian Cruise Line, Carnival:
Cruise ship stocks fell on Wednesday as the number of COVID-19 cases rose in multiple U.S. states and international markets. Shares of cruise operators revived on Monday as the economy resuming gave investors hope for a recovery in cruise bookings. Carnival jumped (NYSE: CCL) 11% along with Norwegian Cruise Line (NASDAQ: NCLH), while Royal Caribbean (NYSE: RCL) gained 3.6%.
In order to be able to ride out coronavirus-related sailing restrictions, Royal Caribbean, Carnival, and Norwegian Cruise Line all raised large amounts of cash via debt offerings in recent months.
Scotts Miracle-Gro (NYSE: SMG) stock rose 5% after-hours after raising its FY 2020 forecast for adjusted EPS to $5.65-5.85 from previous guidance of $4.95-5.15. The company expects sales growth about 16% to 18% for the fiscal year after giving recommendations in May that anticipated an increase of 6% to 8%, equating to revenue of $3.66B-3.72B vs. $3.44B consent.
In addition, Hawthorne sales are forecast to grow 45% to 50% for the full year, compared with a recent increase in guidance of 30% to 35%. Scotts said there is a 40% increase in purchases of its branded soils and more than a 30% rise in its plant food sales as well as strong demand for outdoor and indoor pest control products.
GrubHub Inc. (GRAB) shares dropped more than 7% after-hours in trading. David Faber also reported that it’s disagreeing with Uber Technologies over certain issues. Uber was in talks with Grubhub on and off for about a year, according to a source familiar with the deal. However, Faber said that Uber was preparing to leave the deal over antitrust concerns. Ultimately, discussions were broke down over different matters.
Now Grubhub announced the tie-up with Just Eat shortly after Uber confirmed publicly that it was walking away from the deal.
This is an all-share deal, where Grubhub shareholders will get 0.6710 Just Eat Takeaway.com ordinary shares in exchange for each Grubhub share. This representing an implied value of $75.15 for each Grubhub share (based on the undisturbed closing price of Just Eat Takeaway.com on June 9, 2020, of €98.602), the companies said. This gives Grubhub a total equity consideration (on a fully diluted basis) of $7.3 billion. (Source: Yahoo! Finance)
AMC Entertainment Holdings Inc. (NYSE: AMC) shares rose 1% after the closing bell. On Wednesday the company announced that it would fully be opened globally next month. Almost all theatres in the U.S. and UK will be open with limited capacity the company said on its earnings call.
AMC Entertainment said net losses swelled to $2.18 billion, including a giant $1.8 billion in non-cash impairment charges, for the first quarter of the year from a negative $130 million the year before in what CEO Adam Aron called “unprecedented times.”
Tesla Inc. (NASDAQ: TSLA) share price climbed nearly 8% to an all-time high. It’s also the first time for the electric car-maker to top the $1,000 approach. CEO Elon Musk said he is internally pushing the company to begin “volume production”.
In the First Quarter 2020, Tesla turned a surprise profit in the first quarter of 2020 of $16 million, despite factory shutdowns in China and the US. It said it may still hit its goal of delivering 500,000 vehicles worldwide this year even in the face of the pandemic.
Total revenues for automotive company Tesla Inc. surpassed 24.5 billion U.S. dollars in 2019 with automotive sales accounting for almost 20 billion U.S. dollars.
Starbucks Corporation (NASDAQ: SBUX) shares dropped more than 4% after the company said that revenue lost in its fiscal third quarter. The company’s share fell more than 3% in early trading Wednesday. The stock, which has a market value of $92.6 billion, has fallen 10% this year.
The company expects to swing to a loss in its fiscal third quarter, predicting it lost as much as $3.2 billion in revenue due to the coronavirus pandemic.
On Wednesday, Starbucks announced that it will speed up its new store development with the expansion of drive-thru and Starbucks Pickup formats. At this time, about 60% of Starbucks locations include a drive-thru.