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Sector Update: Consumer

By: MT Newswires
Posted: 8/20/2013 3:50:00 PM
Referenced Stocks: BOBE

Consumer stocks are ending mostly higher today with shares of consumer staple companies in the S&P 500 climbing about 0.2%. Shares of consumer discretionary stocks in the S&P are up nearly 1.1%.

In company news, Bob Evans ( BOBE ) is up more than 9% at $52.01 a share, earlier climbing to within 10 cents of its 52-week high at $52.38 after raising its quarterly dividend to $0.31 per share and increased its share repurchase program by another $150 million to a total of $175 million in FY14.

The bigger dividend and expanded stock buybacks appear to be overcoming any drag the restaurant chain's lackluster Q1 results, including a 19.6% decline in net sales from the same quarter last year to $329.4 million, also trailing the Street consensus by $7.89 million.

EPS for the quarter was $0.58, in line with analyst expectations. BOBE also reaffirmed its FY14 earnings guidance of $2.60 to $2.67 per share, lagging analyst estimates by at least $0.03 per share.

In other sector news,

(+) URBN, Q2 EPS of $0.51 top Street view by $0.03 per share. Net sales rise 12% over last year to $758 mln, coming within $10 mln of estimates.

(-) LITB, Q2 net sales jump 53% year over year to $72.2 mln but lag expectations by $3.6 mln. Adjusted EPS of $0.10 beat by $0.24 per ADS. Sees Q3 revenue of $68 mln to $70 mln, falling at least $8.5 mln below estimates.