25 Jan Consumer Sector Update for 01/24/2018: YGYI,RCL,SRT,AMZN,JAX
Top Consumer Stocks
Consumer stocks reversed their prior declines this afternoon, with shares of consumer staples companies in the S&P 500 increasing over 0.2% this afternoon while shares of consumer discretionary firms in the S&P 500 were adding almost 0.3% in value.
Among consumer stocks moving on news:
– Youngevity International ( YGYI ) was solidly lower heading into Wednesday’s close, sliding as much as 6% lower to a session low of $4.50 a share after the lifestyle company today said it acquired the Gigi Hill handbag and accessories brand and entered into a long-term contract with Gigi Hill co-founder Gabrielle DeSantis to manage the upcoming integration. Youngevity plans to market the new line within its existing fashion and jewelry verticals, believing they provide many strong cross-marketing opportunities. Financial details of the transaction were not disclosed but Youngevity said it expects the new Gigi Hill collection will be available during Q2.
In other sector news:
+ StarTek ( SRT ) rallied Wednesday, increasing almost 33% to a session high of $13.71 a share, after issuing an eight-year warrant to Amazon.com ( AMZN ) to buy up to 4 mln common shares at $9.96 apiece. According to a regulatory filing detailing the companies’ agreement, the warrant will vest after Amazon pays StarTek up to $600 mln for commercial services provided to the ecommerce giant under an existing contract with the customer-engagement company. If Amazon fully exercised the warrant, it would own about 19.9% of StarTek.
+ Royal Caribbean Cruises ( RCL ) sailed to a new record high on Wednesday after today reporting above-consensus Q4 results, including net income of $1.34 per share on both a GAAP and non-GAAP basis, beating the Capital IQ consensus by $0.03 per share. Revenue grew 4.7% year over year to $2 bln, also topping the $1.97 bln analyst mean. Looking forward, Royal Caribbean is looking for adjusted FY18 earnings in a range of $8.55 to $8.75 per share. The Street is at $8.65 per share.
– Baidu ( BIDU ) bounced between small gains and losses today after company president Ya-Chin Zhang said the Chinese internet company will likely strike more deals with Netflix (NFLX) to bring some of its shows to China. The companies last year signed a deal calling on Netflix to provide content to Baidu such as its “Stranger Things” television serial.
– J. Alexander’s (JAX) fell today after the restaurant chain said shareholders owning around 20% of the company’s stock have already signaled their support for its proposed acquisition of Ninety Nine Restaurant & Pub. The company is urging all shareholder vote in favor of the deal.
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