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Consumer Sector Update for 07/28/2017: AAN,SAM,DEST


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Consumer stocks were sharply lower Friday, with shares of consumer staples companies in the S&P 500 dropping almost 1.1% while shares of consumer discretionary firms in the S&P 500 were posting a nearly 0.8% decline.

In company news, Aaron's ( AAN ) jumped out to a new, record high on Friday, topping out at $46.59 a share after the home furnishings and appliances retailer exceeded analyst projections with its Q2 financial results and raised its FY17 outlook above Street views.

Excluding one-time items, the company earned $0.68 per share during the April-to-June reporting period, improving on a $0.59 per share adjusted profit last year and beating the Capital IQ consensus by $0.10 per share. Net sales grew 3.3% over the same quarter last year and also surpassing the $786.1 million analyst mean.

For FY17, Aaron's increased its forecast for non-GAAP net income to a new range of $2.45 to $2.65 per share, up from its prior guidance expecting between $2.15 to $2.40 per share previously and topping estimates looking for $2.38 per share. Net sales also are now seen rising to between $3.33 billion to $3.44 billion compared with its prior view looking for $3.10 billion to $3.31 billion and exceeding the $3.22 billion consensus.

Aaron's today also said it has purchased all of the assets of its largest franchisee, SEI/Aaron's Inc, paying $140 million in cash. It sees the deal increasing its FY17 per-share earnings and adds 104 Aaron's-branded stores in 11 states with more than 90,000 customers last year.

In other sector news,

(+) SAM, (+16.5%) Q2 EPS of $2.35 cruises past Capital IQ consensus by $0.86 per share. Revenue rises 1.3% over same quarter last year to $247.9 mln, also tops the $222.7 mln consensus.

(-) DEST, (-41.5%) Terminates December 2016 merger agreement with Orchestra-Prmaman SA, which continues to own 1.92 mln Destination Maternity shares.

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: AAN , SAM , DEST



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