Consumer Sector Update for 03/16/2017: GPRO,BKS,GES

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Top Consumer Stocks

WMT -0.14%

MCD +0.21%

DIS -0.11%

CVS -0.17%

KO +0.18%

Consumer stocks remain slightly higher just before today's close, with shares of consumer staples companies in the S&P 500 climbing less than 0.1% while shares of consumer discretionary firms in the S&P 500 also were up less than 0.1%.

In company news, GoPro ( GPRO ) was flying high on Thursday after the wearable camera company last night announced a restructuring program that will cost about 270 employee jobs and around $10 million in severage costs but also expecting to reduce its non-GAAP operating costs below $495 million per year.

The announcement follows GoPro late last year it was closing its entertainment division and also cutting back on facilities spending. At the time, it said it was eliminating more than 200 full-time jobs and cancelling other open positions - idling about 15% of its then-workforce - and was positioning the company to reduce its FY17 non-GAAP operating costs to around $650 million.

GoPro Wednesday also said it was expecting Q1 revenue near the top end of its prior guidance expecting between $190 million to $200 million range for the three months ended March 31. It also reiterated its forecast projecting FY17 non-GAAP profitability. Analysts, on average, are expecting $200.6 million in Q1 revenue and a net loss this year of $0.23 per share.

Citing the restructuring initiatives, analysts at Citigroup today raised their investment call for GoPro shares to Neutral from Sell, also increasing their price target for the company stock by $1 to $9 a share.

GPRO shares were up nearly 16% at $8.50 apiece, earlier climbing to a session high of $8.64 a share.

In other sector news,

(+) BKS, Authorizes new stock buyback program for up to $50 mln of its common shares.

(-) GES, Reports weaker-than-expected Q4 results.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Business , Commodities
Referenced Symbols: GPRO , BKS , GES

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