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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.

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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