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Consumer Sector Update for 02/22/2017: TXRH,HVT,NLS

Top Consumer Stocks

WMT +0.45%

MCD -0.07%

DIS -0.02%

CVS +0.53%

KO +0.24%

Consumer stocks were little changed in recent trade, with shares of consumer staples companies in the S&P 500 slipping less than 0.1% while shares of consumer discretionary firms in the S&P 500 were inching less than 0.1% higher Wednesday afternoon.

In company news, Texas Roadhouse ( TXRH ) declined Wednesday after the restaurant chain served up Q4 net income and revenue missing Wall Street forecasts, prompting at least one brokerage today to lower its price target for the company's stock.

The company earned $0.29 per share during the three months ended Dec. 31, down from a $0.32 per share profit during the year-ago period and trailing the Capital IQ consensus by $0.09 per share. Revenue rose 6.7% over the same quarter last year to $484.71 million, also lagging the $497.25 million consensus.

Sales at company-owned restaurants open at least 12 months grew 1.2% year-over-year, which includes a 0.5% negative effect from a calendar shift in the Christmas holiday this year. Through the first 55 days of FY17, comparable restaurant sales increased 1.5% and the company reiterated its prognosis for positive same-restaurant growth this year compared with FY16.

The company last night also said it will distribute a quarterly cash dividend of $0.21 per share, up 10.5% over its most recent distributions and payable March 31 to shareholders of record on March 15.

Following the sub-par Q4 results, however, analysts at the Maxim Group today cut their price target for Texas Roadhouse stock by $4 to $52 a share while keeping their Buy ratings for the company's shares.

TXRH shares were down over 13% at $41.48 each, recovering somewhat from their session low of $40.80 a share earlier during Wednesday trading.

In other sector news,

(+) HVT, (+8.5%) Q4 EPS climbs to $0.51 from $0.41 per share during same quarter last year and beating the Capital IQ consensus by $0.08 per share. Sales rise 2.2% to $220.6 mln but still lags the $221.7 mln Street view.

(-) NLS, (-15.2%) Q4 net income of $0.38 per share misses analyst mean by $0.04 per share. Revenue climbs 15.2% over last year to $125.76 mln, also lagging the $131.96 mln consensus.

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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