Top Consumer Stocks
Consumer stocks were slightly lower ahead of Thursday's closing bell, giving back small gains earlier in today's session. At last look, shares of consumer staples companies in the S&P 500 were falling almost 0.2% in recent trade while shares of consumer discretionary firms in the S&P 500 also were declining nearly 0.3%.
Among consumer stocks moving on news:
(+) Scientific Games ( SGMS ) rallied Thursday, climbing as much as 27%, after the gambling products company said it was considering a possible initial public offering of a minority stake in its social gaming business during 2019, believing that spinning off the rapidly growing division into a stand-alone unit would provide it with more flexibility to pursue additional growth opportunities. The social gaming division recorded a $10 million increase in revenue to $105.1 million during the three months ended Sept. 30, rising 11%, reflecting the success of its recently introduced Monopoly-themed casino application for smartphones as well as continued growth in its core apps such as Jackpot Party and the ongoing popularity of its Bingo Showdown game. Net proceeds from the potential IPO would be used to retire debt at Scientific Games, the company said. The announcement also upstaged the company Thursday also reporting a larger-than-expected Q3 net loss and below-consensus revenue.
In other sector news:
(+) Carvana Co. ( CVNA ) sped as much as 19% higher on Thursday after the used car e-commerce platform late Wednesday reported triple-digit increases in its Q3 revenue and unit sales compared with the prior-year period and projected similarly sized gains for 12 months ending Dec. 31. Revenue for the three months ended Sept. 30 totaled $534.9 million, rising 137% over the same quarter last year after the company sold 25,324 vehicles, representing a 116% increase. For FY18, it sees revenue rising between 115% to 138% over the prior 12-month period and unit sales climbing in a range of 103% to 122%.
(+) CarGurus ( CARG ) was surging earlier Thursday, at one point rising over 22% only to fall back to a more than 6% advance in more recent trading, after reporting Q3 net income and revenue topping analyst expectations and also issued FY17 forecasts exceeding Street views. Excluding one-time items, the online car seller earned $0.08 per share, up from $0.02 per share during the same quarter last year and beating the Capital IQ consensus by $0.03 per share. Revenue grew 43% over year-ago levels to $119 million, also surpassing the $6.3 million analyst mean. The company also is projecting FY18 net income and revenue topping the Street view expecting a $0.23 per share non-GAAP profit on $438.5 million consensus call by at least $0.03 per share and $10.5 million.
(-) Wynn Resorts ( WYNN ) dropped as much as 15% during Thursday trading after reporting adjusted Q3 net income of $1.68 per share, trailing the Thomson Reuters consensus call expecting $1.69 per share. Certain other consensus calls had been expecting $1.67 per share. Revenue rose 10.3% over the same quarter last year to $1.71 billion, beating the Street view by as much as $52 million.