DISH Network falls after earnings report, subscriber loss; Sanchez Energy slides on earnings loss

By James McCandless

San Antonio, May 8 – The distressed debt market experienced another day of low activity on Tuesday, according to traders.

DISH Network Corp. notes took multi-point falls after the company reported disappointing earnings and falling subscriber numbers.

Sanchez Energy Corp. issues dropped after the company reported an earnings loss for Q1 where analysts expected a profit.

Mallinckrodt plc paper traded up after the company posted its Q1 report, beating earnings and revenue estimates.

Intelsat SA notes were up. Last Tuesday, the company posted a disappointing Q1 report. Frontier Communications Corp. issues were mixed. Last week, the company surprised analysts with a better than expected Q1 report. PetSmart, Inc. paper was mixed.

DISH off on earnings

Englewood, Colo.-based pay-TV provider DISH Network notes ended the day down, according to traders, after the company posted its Q1 report, missing analyst estimates for earnings and losing subscribers.

The company posted Q1 earnings of 70 cents per share, 2 cents short of analyst expectations. It also reported a subscriber count of 13.148 million, down from 13.528 million in the previous quarter.

“Those notes were some of the big movers today,” a trader said.

The 5 7/8% notes due 2024 lost about 5½ points to close at around 82½ bid. The 7¾% notes due 2026 fell 2¼ points to close at 88 bid.

Sanchez down

Houston-based independent oil and gas producer Sanchez Energy issues declined after the company reported a 5 cents per share loss in its Q1 report after analysts expected a profit of 22 cents per share.

The company had previously warned investors that Q1 production numbers would be below its guidance range, which came true as the company reported an average of 80,572 barrels of oil a day against an estimate of 82-84,000.

The 6 1/8% notes due 2023 dropped about 6½ points to close at 65¼ bid.

Mallinckrodt gains

Britain-based drug maker Mallinckrodt saw its paper rise after the company posted its Q1 report Tuesday morning. It reported earnings per share of $1.31, 22 cents better than the $1.09 expected by analysts.

Revenue estimates of $563.9 million were also beaten with actual earnings of $572.6 million.

“This puts them in a good place,” a trader said. “They’ve been getting some heat lately over drug prices and they’re fending that off pretty well. They are looking pretty good right now.”

The 4¾% paper due 2023 gained about 3 points to close at around 75½ bid.

Volume names trade

Luxembourg-based satellite communications company Intelsat’s notes traded up. The company reported a 56 cents per share loss in last Tuesday’s Q1 report, falling short of the 41 cents per share predicted.

The Intelsat (Luxembourg) SA 7 ¾% notes due 2021 rose about 1¼ points to close at 71½ bid. The 8 1/8% notes due 2023 gained ¾ point to close at 65¾ bid.

Norwalk, Conn.-based wireline telecom name Frontier Communications issues were mixed. Last week, the company reported a loss of 58 cents per share and $2.2 billion in revenue in Q1, exceeding analyst estimates.

The 7 5/8% notes due 2024 shaved off ¾ point to close at 69¾ bid. The 10½% notes due 2022 traded down ½ point to close at 90½ bid. The 11% notes due 2025 rose about ½ point to close at 81½ bid.

Phoenix-based pet supply retailer PetSmart paper ended mixed. Last week the paper traded down after Amazon.com, Inc. announced an in-house dog food brand that would be available to subscribers of its Prime service.

The 8 7/8% paper due 2025 received downward pressure but finished level at around 54¾ bid. The 5 7/8% paper due 2025 lost ¼ point to close at 70¼ bid.

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