Markets

Consumer Sector Update for 02/19/2015: WMT,BJRI,DAVE

Top Consumer Stocks

WMT -3.20%

MCD -0.55%

DIS +0.06%

CVS -1.56%

KO +1.11%

Consumer stocks were mixed this afternoon with shares of consumer staples companies in the S&P 500 declining about 0.6%. Shares of consumer discretionary firms in the S&P 500 were ahead by about 0.4%.

In company news, Wal-Mart Stores was holding near its session low late in Wednesday trading after the retail giant earlier today said it will raise employee wages but also lowered its FY16 sales forecast.

The company also beat Wall Street projections with its Q4 earnings, posting a $4.97 billion profit, up from $4.35 billion during the same quarter last year. Underlying EPS was $1.61, topping the Capital IQ consensus by $0.08 per share.

Net sales rose 1.4% over year-ago levels to $131.6 million, matching analyst expectations.

Looking forward to the 12 months ending next January, the company halved its projected sales growth to 1% to 2%, blaming "the potential impact of currency headwinds." That works out to a range of $490.56 billion to $495.41 billion while analysts are expecting $495.4 billion in sales.

Projected FY16 EPS lagged the Street view by at least $0.04 per share.

The company also said it will boost the pay of its U.S. employees to at least $9 per hour by next April. The average for full-time WMT workers is expected to climb by more than $1 to around $13 per hour, it said.

WMT shares recently were down over 3% at $83.54 apiece, again nearing their session low of $83.51 a share. The stock has traded in a range of $72.61 to $90.97 a share, climbing 18% over the past 12 months prior to today's slide.

In other sector news,

(+) BJRI, Q4 EPS of $0.31 beats Street view by $0.10 per share. Revenue of $213.9 mln roughly in-line with $214.6 mln consensus.

(-) DAVE, Break-even Q4 trails Capital IQ profit consensus by $0.17 per share. Revenue slips 4.5% year over year to $34.1 mln, roughly matching expectations for $34.24 mln in revenue.

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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