Good Day for Consumer Discretionary Sector; Rent-A-Center Rallies After $0.02 Q1 EPS Beat


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Consumer stocks were mostly higher Tuesday with shares of consumer staples companies in the S&P 500 rising just 0.1% while shares of consumer discretionary firms in the S&P 500 were up nearly 1.2% in late trade.

In company news, Rent-A-Center ( RCII ) shares were ending sharply higher Tuesday after reporting adjusted Q1 earnings that beat analyst projections and forecast FY14 per-share earnings that also topped Wall Street expectations.

The rent-to-own retailer of home furnishings and consumer electronics posted Q1 earnings of $0.57 per share, ex items, beating the Capital IQ consensus by $0.02 per share. Revenue rose 1.7% year over year to $833 million, narrowly trailing the Street view by $7.77 million.

Looking forward, RCII sees FY14 EPS of $2.30 to $2.50, excluding non-recurring items, topping analyst estimates by at least $0.01 per share. Revenue is seen rising 3% to 6% year over prior-year levels, or around $3.197 billion to $3.29 billion, in-line with the $3.25 billion consensus estimate.

RCII shares were up 12.5% at $28.99 each shortly before the closing bell, earlier climbing as much as 16% during today's session. The stock has a $23.65 to $40.80 a share, falling 16.7% over the past year after missing analyst projections during both of the last two quarters.

In other sector news,

(+) NFLX, Q1 adjusted earnings of $0.86 per share top estimates by $0.04. Revenue climbs 24.0% year over year to $1.27, matching consensus. Projected Q2 EPs of $1.12, ex items, beats by $0.13 per share.

(-) ALSN, Funds affiliated with Carlyle Group ( CG ) and Onex Corp (OCX.TO) sell a combined 25 mln shares of the company's common stock, paring their collective stake to 23% if underwriters exercise options to buy 3.75 mln additional shares.

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) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities
More Headlines for: RCII , CG

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