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Consumer Sector Update for 02/15/2017: GRPN,CIDM,FOSL

Top Consumer Stocks

WMT -0.15%

MCD +0.57%

DIS +0.06%

CVS +0.43%

KO +0.06%

Consumer stocks were trending higher today, with shares of consumer staples companies in the S&P 500 rising more than 0.6% while shares of consumer discretionary firms in the S&P 500 were climbing about 0.3%.

In company news, Groupon ( GRPN ) shares surged Wednesday after the local marketplace and coupons company today reported above-consensus Q4 financial results and also predicting higher gross profit and EBITDA during FY17 compared with the previous year.

Excluding one-time items, the company earned $0.07 per share, beating the Capital IQ consensus by $0.04 per share. Revenue rose 1.9% over the same quarter last year to $934.9 million, also topping the $915.14 million analyst mean. North American revenue grew 5% year-over-year, offsetting a 2% decline for the Europe, Middle East and Africa region and a 12% slide for the rest of the world.

Looking forward to the current year, Groupon said it was expecting to generate gross profit in its core 15 countries in a range of $1.30 billion to $1.35 billion, representing an increase of at least $40 million over FY16 levels on an FX-neutral basis after discontinuing operations in 11 underperforming countries beginning with the current quarter ending March 31.

It also sees FY17 adjusted earnings before interest, taxes, depreciation and amortization in the range of $200 million to $240 million, rising between $16 million to $56 million over last year on the same FX-neutral basis in those core countries.

GRPN shares were up almost 22% this afternoon at $4.61 each, slipping only slightly from their session high today of $4.65 a share.

In other sector news,

(+) CIDM, (+33.5%) Narrows fiscal Q3 net loss to $0.07 per share from $0.40 per share during the same quarter last year while revenue falls 25% from year-ago levels to $24.45 mln. No analyst estimates were available for comparison.

(-) FOSL, (-16.6%) Adjusted Q4 EPS of $1.32 beats Capital IQ consensus by $0.11 per share. Revenue falls 3.4% from last year to $959.2 mln, trailing $981.28 mln consensus. Guides Q1, FY17 net income and revenue trailing Street views by considerable margins.

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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