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Sector Update: Consumers

By: MT Newswires
Posted: 5/5/2014 9:07:00 AM
Referenced Stocks: WAG;SYY;TSN

Consumer shares were generally mixed in pre-market trade Thursday.

In consumer sector news, Walgreens ( WAG ) is reporting April sales of $6.49 billion, an increase of 8.8% from $5.96 billion for the same month in fiscal 2013.

Total front-end sales increased 8.8% in April compared with the same month in fiscal 2013, while comparable store front-end sales increased 8.2% Customer traffic in comparable stores increased 2.6% while basket size increased 5.6%. The results were positively impacted by a later Easter.

And, SYSCO Corporation ( SYY ) reported mixed financial results for Q3, or the quarter ended March 29, 2014, with earnings shy of analysts' expectations, and revenue in line.

The distributor of food and related products reported Q1 net earnings of $180.9 million or $0.31 per share, compared with $201.42 million or $0.34 per share in the prior-year period. After adjusting for certain items, which mainly related to merger and integration planning expenses, and a legal contingency accrual, adjusted diluted EPS was $0.38, compared with $0.40 in the prior year period. The Capital IQ analyst estimate is for $0.39.

Revenue was $11.3 billion, up 3.2% from $10.9 billion in the same quarter last year. Analysts were expecting revenue of $11.37 billion.

Finally, Tyson Foods ( TSN ) shares edged up in Monday's pre-market session, despite weaker-than-expected adjusted fiscal Q2 earnings from the producer of chicken, beef, pork and prepared foods, as its revenue still topped the Street view and the company's CEO reiterated his earnings forecast for the year while Tyson also raised its fiscal 2014 sales target.

TSN was down 0.5% at $42.45 in recent pre-market trading , still near the high end of its 52-week range of $23.39 to $44.24.

For the quarter ended March 29, 2014, net income attributable to Tyson jumped to $213 million, or $0.60 per share, from $95 million, or $0.26 per share, in the quarter ended March 30, 2013.