Consumer Sector Update for 01/23/2018: SHLD,NFLX,PG,KMB

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Top Consumer Stocks

WMT +0.54%

MCD +0.34%

DIS -0.62%

CVS -0.01%

KO +0.19%

Consumer stocks were ending broadly split between winners and losers today, with shares of consumer staples companies in the S&P 500 sinking over 0.3% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing more than 0.8%.

In industry news:

Same store sales rose 3.8% over year-ago levels during the week ended Jan. 20, improving on a 2.6% increase during the prior weekly reporting period and marking the strongest rise of the new year. Month-to-date sales were little changed compared with December levels and climbing 0.3 percentage points to 3.3% percent over January 2016 sales.

Among consumer stocks moving on news:

Sears Holdings ( SHLD ) was drifting lower in late Tuesday trading after today disclosing plans to swap all of its outstanding 8% senior unsecured notes due 2019 with new securities of same yield, maturity and principal amount. The new 8% notes will be convertible into common stock at a rate of about 120 shares per $1,000 in principal – or about $8.33 per share. The company also plans to exchange all of its 6.625% senior secured notes due 2018 with new securities maturing in 2019 maturity and a conversion price of roughly $5 per share.

In other sector news:

+ Netflix ( NFLX ) climbed over 13% to a best-ever $257.71 a share after last night projecting Q1 net income and revenue exceeding Wall Street expectations. The streaming video service also reported a 32.6% increase in Q4 revenue over year-ago levels to $3.286 bln as well as a nearly threefold increase over last year’s $0.15 per share profit, earning $0.41 per share during the three months ended Dec. 31. Both metrics matched analyst estimates.

+ Kimberly-Clark ( KMB ) was hanging on to a slim gain after reporting adjusted Q4 earnings of $1.57 per share, beating Street views by $0.03 per share. Net sales rose 0.9% to $4.58 bln, lagging the $4.61 bln analyst consensus.

– Procter & Gamble ( PG ) declined Tuesday despite reporting fiscal Q2 core earnings of $1.19 per share, adding $0.11 per share to last year’s core profit and beating the $1.13 per share analyst mean. Net sales rose 21% year over year to $17.40 bln, roughly in-line with the $17.39 bln consensus view.

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