01 Feb Consumer Sector Update for 01/30/2018: HSY,HOG,ALV,UAL,MCD
Top Consumer Stocks
Consumer stocks continued to outperform the broader U.S. market in afternoon trading, resisting some of the deeper declines affecting most other sectors, with shares of consumer staples companies in the S&P 500 sinking about 0.5% this afternoon while shares of consumer discretionary firms in the S&P 500 also were slipping 0.5%.
Among consumer stocks moving on news:
The Hershey Company ( HSY ) was narrowly lower Tuesday afternoon, slipping back under its $109.67 starting mark and following analysts at Susquehanna today boosting their price target for the candy-maker by $2 to $110 a share and also reiterating their Neutral rating for the company’s stock. The move follows RBC Capital Markets similiarly increasing their Hershey price earlier today by $2 to $122 a share and restating its Sector Perform investment recommendation. The company will release its Q4 financial results on Thursday, Feb. 1.
In other sector news:
+ Autoliv ( ALV ) sped to a fresh record high on Tuesday of $149.30 a share after the Swedish auto-parts supplier reported adjusted Q4 net income of $2.03 per share, beating Wall Street expectations by $0.27 per share. Net sales rose 5% to $2.73 bln, also exceeding the $2.69 bln analyst mean. The company is projecting 7% sales growth during Q1 compared with year-ago levels; analysts, on average, are modelling 7.1% growth for the January-to-March period.
+ United Continental ( UAL ) was flying about 1% higher this afternoon following an upgrade today of the airline carrier to Overweight from Underweight at JP Morgan.
– McDonald’s ( MCD ) was ending slightly lower today after reporting non-GAAP Q4 net income and revenue topping Street expectations. Excluding $0.84 per share resulting from federal tax changes and other one-time charges, the fast-food restauranteur earned $1.71 per share, beating the Capital IQ consensus by $0.12 per share. Net sales fell 11.4% to $5.34 bln but also came in ahead of the $5.22 bln analyst mean.
– Harley-Davidson ( HOG ) sputtered Tuesday, with the motorcycle manufacturer falling almost 8% after reporting Q4 GAAP earnings of $0.05 per share, down from $0.27 per share during the same quarter last year. Net income and per-share earnings were hurt by a $53.1 mln tax charge following recent changes in federal tax law as well as a $29.4 mln, pre-tax charge after a voluntary product recall. Excluding one-time items, it earned $0.54 per share, beating the Capital IQ consensus by $0.09 per share. Net sales rose 12.5% to $1.05 bln, topping the analyst mean by $40 mln. The company today also said it will close its plant in Kansas City, Mo., consolidating its final assembly operations, as part of broader cost-cutting efforts.
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