Markets

Consumer Sector Update for 02/05/2015: GMCR,CONN,CLW

Top Consumer Stocks

WMT +0.29%

MCD +0.11%

DIS +0.83%

CVS -0.42%

KO -0.04%

Consumer stocks were holding moderate gains this afternoon, with shares of consumer staples companies in the S&P 500 advancing 0.3%. Shares of consumer discretionary firms in the S&P 500 were ahead more than 0.5%.

In company news, Keurig Green Mountain ( GMCR ) tumbled Thursday after reporting fiscal Q1 net income and revenue trailing Wall Street expectations as well as offering Q2 and FY15 projections lagging analyst opinion.

GMCR shares were almost 4% lower at $116.60 apiece, rebounding from an early slide as low as $109.08 a share. The stock has traded within a 52-week range of $90.08 to $158.87 a share, rising more than 12% over the past 12 months prior to Thursday's drop.

Net income during the 13 weeks ended Dec. 27 declined to $134.6 million, or $0.82 per share, from a $138.2 million profit during the year-ago period. Excluding non-recurring items, non-GAAP earnings fell to $143.9 million, or $0.88 per share, down from $146.1 million last year and lagging the Capital IQ consensus by $0.01 per share.

Revenue was little changed from year-ago levels at $1.386 billion, missing estimates of $1.49 billion.

Looking forward to the rest of FY15, the company is projecting revenue growth in the mid-single to high-single digits from prior-year levels while analysts, on average, are modeling 12.1% growth to around $5.28 billion in overall revenue. For the current quarter ending in March, GMCR sees revenue rising in the mid-single digits, lagging the Street view expecting around 11.5% revenue growth during Q2.

The company also is expecting Q2 non-GAAP earnings between $1.00 to $0.05 per share, trailing analyst projections by at least $0.13 per share. It also is guiding FY15 adjusted EPS growth in the mid-single digits. The analyst consensus is looking for 7.3% growth to $4.20 per share.

In other sector news,

(+) CONN, (+20.7%) Reports 4.9% increase in January same-store sales, overall sales last month climbing 16% to $93.6 mln. Issues downside Q4 guidance, expecting $350.5 mln in revenue, trailing analyst estimates by around $75.69 mln.

(-) CLW, (-18.2%) Q4 adjusted EPS of $0.77 misses by $0.20 per share. Revenue rises 0.4% to $472.3 mln, trailing Street by $13.12 mln. RBC Capital Markets downgrade to Sector Perform. DA Davidson reiterates Buy rating, raises price target by $4 to $89.

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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