Consumer Sector Update for 03/29/2018: SPB,ENR,PVH,STZ,GME

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Top Consumer Stocks

WMT +1.24%

MCD +0.57%

DIS +2.16%

CVS -0.81%

KO +0.43%

Consumer stocks kept adding to their prior gains Thursday afternoon, with shares of consumer staples companies in the S&P 500 increasing over 0.7% in value while shares of consumer discretionary firms in the S&P 500 were nearly 1.4% higher.

Among consumer stocks moving on news:

+ Spectrum Brands Holdings ( SPB ) kept running higher on Thursday, climbing as much as 16%, after saying federal regulators have signed off on the proposed acquisition of its battery and lighting products business by rival battery-maker Energizer Holdings ( ENR ), with the Federal Trade Commission allowing the Hart-Scott-Rodino antitrust review period to expire without any objections. The deal is expected to close during the second half of 2018, the companies said, adding the transaction still remains subject to regulatory approvals in several jurisdictions outside the United States along with other customary closing conditions.

In other sector news:

+ PVH Corp ( PVH ) was adding more than 6% in value on Thursday following the apparel company late Wednesday saying its non-GAAP Q4 earnings rose to $1.58 per share from $1.23 per share last year to top Wall Street forecasts by $0.11 per share. Revenue jumped to $2.5 billion from $2.11 billion in the year-ago period, also exceeding the $2.35 billion consensus call. Its outlook for the current year ending next January also exceeds expectations, including projected adjusted earnings in a range of $9.00 to $9.10 per share on the back of 7% sales growth this year. Analysts, on average, are looking for the company to earn $8.90 per share with a 5.7% increase in yearly sales.

+ Constellation Brands Inc ( STZ ) was reaching for the skies Thursday, at one point climbing almost 5%, after the brewer reported above-concensus Q4 adjusted net income and revenue and also raised its quarterly cash dividend by $0.22 - or about 42% - per share over its most recent distribution to $0.74 per share. Excluding one-time items, it earned $1.90 per share, beating the Capital IQ consensus by $0.16 per share. Revenue grew to $1.77 billion from $1.63 billion last year, also topping the $1.76 billion analyst mean. The upcoming dividend, including the extra $0.22 per share, is payable May 24 to shareholders of record on May 10.

- GameStop ( GME ) tumbled to a 13-year low on Thursday, dropping nearly 16% to its worst price since April 2005 despite parlaying strong holiday-season sales into better-than-expected Q4 financial results. The video games and consumer electronics retailer earned $2.02 per share during the three months ended Feb. 4, down from $2.38 per share during the same quarter last year but still beating the Capital IQ consensus by $0.06 per share. Net sales climbed to $3.5 billion from $3.05 billion last year and also topped the Street call by around $170 million. But its FY18 per-share profit forecast was at least $0.05 shy of the $3.40 per share analyst mean.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Business , Commodities
Referenced Symbols: SPB , ENR , PVH , STZ , GME

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