Consumer Sector Update for 02/16/2018: KO,CPB,WEN

Top Consumer Stocks

WMT +0.75%

MCD -1.64%

DIS +1.46%

CVS +2.17%

KO +1.18%

Consumer stocks were rising during Friday trading, with shares of consumer staples companies in the S&P 500 adding more than 0.5% this afternoon although shares of consumer discretionary firms in the S&P 500 were climbing only slightly more than 0.1%.

Among consumer stocks moving on news:

+ Coca Cola ( KO ) was moderately higher Friday afternoon, climbing nearly 2% to a session high of $45.64 a share, after the soft-drink bottler topped analyst expectations with its Q4 top and bottom lines despite headwinds from refranchising initiatives contributing to a double-digit revenue retreat during the October-to-December period. Excluding one-time items, the company earned $0.39 per share, up from $0.37 during the same quarter last year and beating the Capital IQ consensus by $0.01 per share. It also generated $7.51 billion in revenue during the three months ended Dec. 31, falling 20% from $9.41 billion during the year-ago period but still exceeding the $7.36 billion Street view. Coke said the ongoing refranchising of its bottling territories created a 26% headwind during the quarter. For FY18, the company is projecting 4% growth in organic revenue and a rise between 8% to 10% in its adjusted per-share earnings compared with the prior-year.

In other sector news:

- Campbell Soup Company ( CPB ) fell as much as 4.5% on Friday, bottoming out at $45.47 a share, after the canned foods company issued a FY18 sales outlook lagging analyst estimates, upstaging better-than-expected fiscal Q2 financial results. The company is expecting revenue during the 12 months ending in late July to rise or fall within 1% of its FY17 total. Analysts, on average, are expecting 1.5% year-over-year growth to around $7.87 billion this year. It also is projecting non-GAAP net income in a range of $3.10 to $3.17 per share, spanning the $3.15 per share consensus. For the three months ended Jan. 28, the company reported adjusted Q2 earnings of $1.00 per share, eclipsing the $0.81 per share Street view. Revenue nudged 0.5% higher from the year-ago period to $2.18 billion, topping the Capital IQ consensus by around $20 million.

- Wendy's Company ( WEN ) advanced as much as 6% higher, reaching an intra-day high of $16.66 a share, after the restaurant chain Friday announced a 21% increase in its quarterly cash dividend as well as authorizing a new stock buyback program. The company said its upcoming dividend payment will rise to $0.085 per share from its current $0.07 per share, payable March 15 to shareholders of record on March 1. It also is beginning a new share repurchase program to reacquire and retire up to $175 million of its common stock through March 3, 2019.

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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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