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Sector Update: Consumer

By: MT Newswires
Posted: 1/24/2014 3:49:00 PM
Referenced Stocks: KMB

Consumer stocks are lower with shares of consumer staples companies in the S&P 500 giving up relative strength earlier in the session to trade about 0.7% lower just before the close. Shares of consumer discretionary firms in the S&P 500 are sharply lower, falling about 1.8%.

In company news, Kimberly-Clark ( KMB ) was higher today after posting Q4 earnings that beat analyst estimates.

The consumer-products conglomerate, known for its Huggies and Depends disposable diapers brands among the hundreds of paper towels, tissues and other kitchen and bathroom paper products, posted adjusted earnings of $1.44 per share in Q4, beating the Capital IQ consensus call by $0.05.

Revenue was unchanged from year-ago levels at $5.3 billion, in-line with estimates. The company said organic sales rose 5%. Adjusted operating profit also grew 5% over the same quarter last year to $836 million.

Looking forward to FY14, KMB is expecting adjusted earning of $6.00 to $6.20 a share on $20.94 billion to $21.58 billion in revenue, representing as much as 2% growth over last year. The Street is looking for a $6.10 per share gain on $21.67 billion in revenue this year.

In other sector news,

(+) SBUX, Q1 EPS of $0.71 beats expectations by $0.02 per share. Revenue climbs 11.8 year over year to $4.23 bln, roughly in-line with estimates. Global same-store sales rose 5%, driven by a 4% increase in traffic. Guides Q2, Q3 earnings below consensus but projected FY14 EPS matches Street view.

(-) CST, Sees Q4 daily U.S., Canadian motor fuel volume at the low end of forecast range looking for 4,850 to 4,950 gallons per site. Merchandise sales also seen at bottom of guidance expecting $3,250 to $3,350 per site per day.