Consumer Sector Update for 01/27/2017: WYNN,LVS,MGM,MPEL,LRN,WKHS

Top Consumer Stocks

WMT -2.00%

MCD +0.70%

DIS +0.81%

CVS -2.28%

KO -0.25%

Consumer stocks were largely underwater Friday, with shares of consumer staples companies in the S&P 500 falling about 0.7% while shares of consumer discretionary firms in the S&P 500 were declining about 0.4%.

In company news, Wynn Resorts ( WYNN ) rose Friday after the casino company last night reported Q4 financial results exceeding Wall Street expectations and prompting at least one analyst upgrade today.

On a GAAP basis during the three months ended Dec. 31, the company earned $113.8 million, or $1.12 per share, improving on Q4 net income of $87.2 million and $0.86 per share during the same quarter last year and easily beating the analyst mean expecting a $0.76 per share GAAP profit.

Excluding a reduction in the fair value of a redemption note and other one-time items, it earned $51.0 million, or $0.50 per share, down from an adjusted $104.1 million and $1.03 per share last year and missing the $0.87-per-share Capital IQ consensus, if comparable. Revenue grew 37.3% over year-ago levels to $1.3 billion, topping the Street view by around $50 million.

Following last night's results, analysts at Instinet today raised their investment call for Wynn stock to Neutral from Reduce. Telsey Advisory Group also increased its price target for the company's stock by $4 to $110 a share, maintaining its Outperform rating.

WYNN shares were up over 8% at $103.65 apiece, easing slightly from a recent jump to a session high of $103.90 a share.

The strong performance by Wynn Resorts also was having a positive effect on several of its peers with significant casino operations in Macau. Las Vegas Sands Corp. ( LVS ) gained nearly 2% at $53.30 a share and MGM Resorts International ( MGM ) was adding almost 1% in value to $29.73 a share. Shares of Melco Crown Entertainment ( MPEL ) also were higher in recent trade, climbing about 1% to $17.35 apiece, giving roughly half of an initial 2% advance to $17.55 a share.

In other sector news,

(+) LRN, (+15.0%) Q2 EPS of $0.30 beats two-analyst estimate by $0.03 per share. Revenue climbs 5.9% to $221.1 mln, topping the $217.1 mln consensus but projected Q3 revenue of $210 mln to $220 mln, lagging Street by at least $10.01 mln.

(-) WKHS, (-13.1%) Prices $19.5 mln public offering of 6.5 mln shares of common stock at $3 apiece, a 13.5% discount to Thursday's closing price.

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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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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