Stock Alert: Wayfair Surges 42% On Upbeat Outlook

(RTTNews) - Shares of Wayfair Inc. (W) are surging more than 42 percent in Monday's trading at $71.97 after the online furniture retailer said it expects to meet or exceed its financial outlook for the first quarter of 2020. The stock has traded in a range of $21.70 to $166.40 in the past 52 weeks.

Wayfair said that for the first quarter, it expects to meet or exceed its previously issued guidance for consolidated net revenue growth of 15 percent to 17 percent year-over-year and consolidated adjusted EBITDA margin in a range of negative 7.3 percent to 7.8 percent. Further, Wayfair said it is accelerating its efforts to drive towards adjusted EBITDA profitability and materially improve its cash flow profile in 2020.

The company announced a private placement of convertible senior notes in an aggregate principal amount of $535 million. Two investment firms, Great Hill Partners and Charlesbank Capital Partners, led the transaction. The notes will mature in five years. They will bear interest at an annual rate of 2.5 percent and feature a $72.50 conversion price, representing a 46 percent premium to the average.