Consumer Stocks Drifting Lower; Krispy Kreme Falls 15% After Q1 Revenue Miss, Weak FY15 EPS Outlook

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Top Consumer Stocks

WMT +0.14%

MCD -0.31%

DIS -0.56%

CVS -0.41%

KO +0.31%

Consumer stocks were lower, with shares of consumer staples companies in the S&P 500 slipping about 0.3%. Shares of consumer discretionary firms in the S&P 500 were off about 0.3%.

In company news, investors were shunning Krispy Kreme Doughnuts ( KKD ) Tuesday after the company late Monday reported Q1 revenue trailing analyst forecasts and lowered its FY15 per-share earnings guidance below consensus.

KKD shares were down nearly 15% in recent trade at $16.25 apiece, just 5 cents above its session low. The stock has a 52-week range of $15.70 to $26.63 a share, declining just under 5% in value over the past year.

Net sales rose 0.8% during the three months ended April 30 compared with the year-ago period to $121.6 million, missing the Capital IQ consensus by around $3.93 million. It earned $0.23 per share during the quarter, in-line with estimates.

KKD executives said the doughnut retailer recorded its best pretax earnings for a single quarter in over ten years, describing it as "a remarkable achievement" in the wake of severe winter weather that reduced both in-store and wholesale sales.

Looking forward, KKD cut its projections for FY15 earnings by $0.04 from its prior outlook to a new range of $0.69 to $0.74 per share, lagging the Street view by at least $0.02 per share.

In other sector news,

(+) DG, (+4.3%) Q1 revenue grows 6.8% year over year to $4.52 bln, matching analyst estimates. Also reaffirms FY15 EPS of $3.45 to $3.55 on 8% to 9% revenue growth, in-line with Street view looking for $3.51 per share profit and $19.02 bln in sales.

(-)ZQK, (-37.0%) Reports Q2 net loss of $0.15 per share, $0.13 wider than the Capital IQ consensus. Revenue falls 10.5% to $408 mln, trailing estimates by $38.61 mln. Extends goal of profit-improvement program until the end of FY17.



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Referenced Stocks: KKD

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