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Consumer Sector Update for 05/09/2018: PRTY,PG,ODP,PZZA

Top Consumer Stocks

WMT -3.34%

MCD -0.52%

DIS -1.79%

CVS +0.89%

KO -0.31%

Consumer stocks were narrowly mixed in late Wednesday trading, with shares of consumer staples companies in the S&P 500 falling almost 0.1% this afternoon, reversing a prior advance, while shares of consumer discretionary firms in the S&P 500 were climbing slightly less than 0.2%.

Among consumer stocks moving on news:

+ Party City ( PRTY ) celebrated Wednesday afternoon, with shares of the party supplies retailer hanging on to a more than 1% gain after earlier jumping out to a more thna 6% advance that followed the company reporting adjusted Q1 earnings and revenue topping Wall Street expectations. Excluding one-time items, it earned $0.07 per share, up from a $0.05 per share non-GAAP profit during the year-ago period and exceeding the Capital IQ consensus by $0.02 per share. Revenue totalled $507.8 million during the January-to-March reporting period, up from $477 million during the same quarter last year and also topped the $502.9 million analyst mean. Brand comparable sales increased 2.4% during the quarter.

In other sector news:

+ Office Depot ( ODP ) was more than 4% higher on Wednesday, easing from a 13% gain earlier in the session that followed the office-products retailer reporting Q1 net sales topping Wall Street expectations and raised its FY18 financial outlook. Sales during the three months ended March 31 increased to $2.83 billion from $2.68 billion during the same quarter last year and exceeding the Capital IQ consensus by around $90 million. Excluding one-time items, the company also earned $0.08 per share during the quarter, halving its $0.16 per share adjusted profit last year and matching the analyst mean. Looking forward, Office Depot also is expecting around $10.8 billion in FY18 revenue, up $200 million over its prior guidance and edging out the $10.75 billion Street view.

+ Procter & Gamble ( PG ) was more than 1% higher again on Wednesday, recovering from a mid-morning retreat that erased almost all of an initial advance that followed the consumer products giant beginning a $1.25 billion cash tender offer for several series of the company's debt securities. The company is expecting to repurchase up to $97 million each of its 8.75% debentures due 2022 and its 8.00% debentures due 2024 as well as up to $66.2 million of its 8.00% debentures due 2029 and GBP310 million of its 6.25% pound-denominated notes due 2030. The tender offer also includes another six series of dollar-, pound- or euro-denominated notes and will pay an early-tender premium of $30 for each $1,000 of notes tendered prior to a May 22 deadline. The tender offer is slated to run through midnight on June 6, unless extended.

- Papa John's International ( PZZA ) slumped Wednesday, sliding over 11% to its lowest share price since January 2016 at $52.03 a share, after the restaurant chain saw its Q1 sales and profit decline from year-ago levels and also missing Wall Street expectations. The company earned $0.50 per share during the three months ended March 31, down from $0.77 per share during the same quarter last year and trailing the Capital IQ consensus looking for GAAP earnings of $0.61 per share and normalized net income of $0.62 per share. Net sales fell 4.9% year-over-year to $427.4 million, lagging the $440.7 million analyst consensus. Same-restaurant sale rose 0.3% over year-ago levels.

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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