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Consumer Stocks Edging Higher at Mid-Day; Costco Slumps After Fiscal Q2 Earnings Miss

By: MT Newswires
Posted: 3/6/2014 12:29:00 PM
Referenced Stocks: COST

Top Consumer Stocks

WMT +0.29%

MCD +0.52%

DIS +0.57%

CVS +0.17%

KO +0.42%

Consumer stocks were slightly higher Thursday with shares of consumer staples companies in the S&P 500 adding just 0.1%. Shares of consumer discretionary firms in the S&P 500 were up nearly 0.4%.

In company news, Costco ( COST ) shares fell Thursday after the discount retailer reported fiscal Q2 earnings that were down compared with year-ago levels, also missing analyst estimates for the period, and quarterly revenue also lagged the consensus view.

Net income for the 12 weeks ended Feb. 16 was $463 million, or $1.05 per share, down from a $2.01 profit during the same period last year and missing the Capital IQ consensus by $0.12 per share.

Revenue rose 5.8% year over year to $26.31 billion, or around $270 million below analyst projections. Sales at stores open more than 12 months were up 2.0% from last year, trailing Wall Street opinion looking for 2.8% growth. Overall, domestic sales were up 2% over year-ago levels while international sales declined about 1% in February.

Shares were down 2.6% at $113.46 each in recent trade, earlier sliding to an intra-day low of $112.27 a share. The stock has a 52-week range of $101.01 to $126.12 a share.

In other sector news,

(+) BORN, (+23.6%) Earns $0.19 per share in Q4 on $107.9 mln in revenue, up 30.7% from year-ago levels. Analyst estimates were not available for comparison.

(-) SPLS, (-14.4%) Announces plans to close 225 stores after Q4 EPS of $0.33, ex items, misses by $0.06. Revenue falls 10.6% year over year to $5.87 bln, trailing estimates by $130 mln. Same-store sales slide 7%. Guides Q1 earning below consensus.