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

Top Consumer Stocks

WMT -0.03%

MCD +0.41%

DIS +0.06%

CVS +1.00%

KO +0.04%

Consumer stocks raced higher this afternoon, with shares of consumer staples companies in the S&P 500 rising just under 1.0% as a group and were now leading the U.S. markets to a higher close while shares of consumer discretionary firms in the S&P 500 were climbing over 0.5%.

In company news, MDC Partners ( MDCA ) jumped out to a big gain on Wednesday after Goldman Sachs ( GS ) today agreed to invest $95 million in the advertising and marketing company through the purchase of non-voting convertible preference shares.

As part of the upcoming investment, MDC Partners is expanding its six-member board of directors by an another seat to make room for Bradley Gross, who is a managing director in Goldman's merchant banking division. The preference shares will be turned into Class A common stock convertible at the option of the holder with an initial conversion price of $10.00 per share, representing a 48% premium to the stock's average closing price over the past 30 trading days.

The company expects to use net proceeds from the investment to pay down existing debt owed under its credit facility and for general corporate purposes. The transaction is expected to close by the end of March.

MDCA shares were up almost 31.5% at $8.88 each, previously topping out today at $9.30 a share. GS shares also were higher, climbing almost 1% to $251.23 apiece after earlier rising to a record high of $251.95 a share.

In other sector news,

(+) CIDM, 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, 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.

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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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