Top Consumer Stocks
Consumer stocks were ending sharply lower today, with shares of consumer staples companies in the S&P 500 sinking nearly 1.8% this afternoon while shares of consumer discretionary firms in the S&P 500 were dropping just over 1.1%.
Among consumer stocks moving on news:
- Skechers USA ( SKX ) took a big spill on Friday, at one point falling over 29%, after the footwear retailer issuing sub-par forecasts for its net income and sales for the current quarter ending June 30 and eclipsing better-than-expected financial results for the just-concluded Q1 and prompting at least one analyst downgrade. The company is expecting Q2 net income in a range of $0.38 to $0.43 per share on between $1.120 billion to $1.145 billion in sales, lagging the Capital IQ consensus looking for a $0.54 per share Q2 profit on $1.16 billion in sales. It earned $0.75 per share during the three months ended March 31, beating the analyst mean by $0.01 per share. Quarterly sales totaled $1.25 billion compared with $1.07 billion last year, also exceeding the $1.20 billion Street view. Following the weak Q2 forecast, analysts at Wedbush Friday lowered their stock rating for Skechers to Neutral from Outperform and cut their price target by $12 to $34 a share. Monness Crespi & Hardt also trimmed its price target for Skechers by $5 to $45 a share while maintaining its Buy rating.
In other sector news:
+ Pinnacle Foods ( PF ) surged higher Friday, at one point jumping almost 11%, after Jana Partners disclosed owning 9.1% of the convenience food products company's common stock. According to a regulatory filing late Thursday, Jana paid $599.5 million to buy over 10.8 million Pinnacle shares and three of its principals spent another $27.9 million to personally acquire a combined 512,000 shares between them. Jana said it believes the company's shares are undervalued and represent an attractive investment opportunity, adding it plans to soon talk with Pinnacle management to discuss ways to enhance shareholder value, including certain operational changes and capital allocation as well as potential strategic alternatives such as a sale or other form of business combination.
- Gentex ( GNTX ) declined nearly 7% to a session low of $22.06 a share on Friday after the automobile electronics company reported improved Q1 sales compared with year-ago levels but still trailed analyst projections. Total sales during the three months ended March 31 rose 3% over the same quarter last year to $465.4 million compared with $453.5 million last year and the $477 million analyst consensus. It earned $0.40 per share during Q1, rising from $0.33 per share last year and matching the Capital IQ consensus.
- American depository shares of Controladora Vuela Compania de Aviacion ( VLRS ) were grounded Friday, dropping to their lowest price since October 2014 at $7.30 per ADS, after the Mexican passenger and cargo carrier also known as Volaris reported below-consensus Q1 financial results. The company earned MXN1.11 per share during the first three months of 2018, or a $0.60 per ADS, missing the Capital IQ mean expecting a GAAP net loss of $0.15 and a normalized net loss of $0.33 per share. Net sales rose 2.7% over year-ago levels to MXN5.85 billion, or $319 million, but also trailed the Street view expecting MXN6.07 billion in Q1 sales.