Sector Update: Consumer Stocks Higher Late; ITT Education Slumps After Sale-Leaseback Deal Scrapped

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Consumer stocks were higher this afternoon with shares of consumer staples companies in the S&P 500 climbing about 0.5%. Shares of consumer discretionary firms in the S&P 500 were up about 1.3%.

In company news, ITT Educational Services ( ESI ) plunged Monday after today disclosing College Portfolio Buyer LLC has terminated a proposed sale-leaseback transaction of 24 properties owned by the for-profit educator when ESI refused to extend negotiations through mid-September.

According to regulatory documents filed today, ESI is now seeking out alternative potential buyers. It also last week lined up an additional $18 million in loan guarantees, boosting financing for a letter of credit to a total of $98 million.

The sale-leaseback would have generated as much as $119.1 million in proceeds for ESI, according to earlier company documents.

ESI shares were down nearly 46% at $7.59 apiece in late trade, falling to a new session low. The stock has traded within a 52-week range of $9.65 to $45.80 a share, declining almost 65% over the past 12 months.

In other sector news,

(+) TSRYY, KKR ( KKR ) and Rhone Capital boost non-binding buyout offer by 50 cents to $5.20 per share in cash.

(-) KORS, Fiscal Q2 EPS outlook trails estimates by at least $0.02 per share. Revenue guidance lags Street by at least $580,000. Q1 EPS beats by $0.10, revenue also tops Street. Raises FY15 EPS guidance by $0.15, topping estimates by at least $0.04.

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

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This article appears in: Investing Commodities
Referenced Stocks: ESI , KKR


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