Consumer Sector Update for 03/12/2018: ODC,CLX,LGF.A,LGF.B,ADM

Top Consumer Stocks

WMT -0.42%

MCD +0.62%

DIS +0.69%

CVS -0.17%

KO -0.67%

Consumer stocks were mixed Monday, with shares of consumer staples companies in the S&P 500 sinking less than 0.1% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing nearly 0.6%.

Among consumer stocks moving on news:

- Oil-Dri Corp of America ( ODC ) was edging lower in late Wednesday trading, with shares of the cleaning products company reversing earlier gains that followed it reporting a fiscal Q2 net loss of $0.15 per share compared to earnings of $0.58 per share during the same period a year ago. The company generated $68.1 million in total revenue during the three months ended Jan. 31, up from $65.2 million during the same period a year ago. Analyst estimates were not available for comparison.

In other sector news:

+ Archer-Daniels-Midland Co ( ADM ) climbed as much as 4% on Monday, reaching a session high of $44.98 a share, after analysts at Goldman Sachs raised their investment rating for the food processor's stock to Buy from Neutral and also setting a $50 price target for the company's stock.

+ Class A and Class B shares of Lions Gate Entertainment (LGF.A,LGF.B) were hanging on to a slim rise Monday after saying its Lions Gate Capital subsidiary was beginning a $520 million private exchange of its outstanding 5.875% senior notes due 2024. The company said current noteholders will receive an equal amount of new, unregistered 5.875% senior notes also due 2024 plus $2.50 in cash for each $1,000 of notes they swap.

- Clorox ( CLX ) was falling in Monday mid-day trading, reversing a 1% rise earlier in the session that initially followed the consumer and homewares company saying it was buying Nutranext, a health and wellness company selling Rainbow Light and Natural Vitality multivitamins, for $700 million. Clorox is expecting the acquisition will reduce its per-share earnings between $0.07 to $0.11 during its fiscal Q4 ending June 30. From there, the company is projecting the deal will trim its FY19 earnings by $0.08 to $0.12 per share before turning accretive in FY20. Nutranext generated around $200 million in sales during 2017, with about 90% of those sales coming from the United States. Clorox is expecting to fund the deal with a combination of cash and debt financing.

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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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