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Sector Update: Consumer

By: MT Newswires
Posted: 2/25/2014 12:26:00 PM
Referenced Stocks: ZU;CG

Consumer stocks were higher Tuesday with shares of consumer staples companies in the S&P 500 rising about 0.6%. Shares of consumer discretionary firms in the S&P 500 were ahead about 0.5%.

In company news, shares of zulily Inc. ( ZU ) jumped over 47% on Tuesday, reaching a new all-time high after the recently minted online "flash" sale retailer posted Q4 earnings and revenue that beat analyst forecasts and it also issued upside revenue guidance for the current quarter.

ZU earned $0.10 per share during the three months ended Dec. 31, 2013, beat Wall Street expectations by $0.06. Revenue doubled from the year-ago period to $257 million, also topping the Capital IQ consensus by around $31.53 million.

The company is projecting Q1 revenue in a range of $225 million to $235 million, exceeding analyst estimates by at least $2.07 million. Forecasts FY14 revenue of $1.1 billion to $1.15 billion, in-line with estimates looking for $1.11 billion in revenue this year.

Shares raced as high as $63.00 each during the first hour of today's session before easing slightly into their current range around $60.20 a share, up 40%. ZU completed its initial public offering of stock on Nov. 15, 2013, selling nearly 6.4 million shares at $22 apiece and generating just over $140 million in gross proceeds.

In other sector news,

(+) HVT, (+14.3%) Reports Q4 net income of $0.42 per share, topping Capital IQ consensus by $0.03. Revenue adds 7.6% year over year to $196.2 mln, beating Street view by $2.57 mln. Same-store sale jump 9.5% over year-ago levels.

(-) ALSN, (-3.3%) Announces plans for secondary offering of stock by funds affiliated with the Carlyle Group ( CG ) and Onex Corp (OCX.TO). The company will repurchase $100 mln of the shares from the selling shareholders.