Markets

Consumer Sector Update for 06/02/2016: HLT,WUBA,CONN

Top Consumer Stocks

WMT +0.59%

MCD +0.07%

DIS +0.15%

CVS +0.01%

KO +0.01%

Consumer stocks were mixed in late 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 rising more than 0.5%.

In company news, Hilton Hotels ( HLT ) advanced Thursday after the hotel company filed registration statements with federal regulators detailing its previously announced plans to split into three distinct, publicly traded companies.

The company plans to spin-off its timeshare business, Hilton Grand Vacations, as well as the bulk of its real estate business into stand-alone companies through tax-free transactions, with the remaining operations converting into a real estate investment trust.

The real estate business will be named Park Hotels & Resorts and would generate around $299 million in net income yearly on around $2.7 billion in annual revenue, based on its 2015 operations.

The timeshare business generated $174 million in net income on $1.5 billion in revenue during 2015, while the new REIT business is projected to generate between $795 million to $825 million in pro forma adjusted earnings before interest, taxes, depreciation and amortization this year.

HLT shares were up just over 3% at $21.59 a share, previously reaching a session high of $21.73 a share.

In other sector news,

(+) WUBA, Reports Q1 net loss of $0.36 per share, coming in $0.15 per share smaller than Capital IQ consensus. Revenue rises 165.6% to $231.3 mln, also beating the $224.84 mln consensus. Guides Q2 revenue in-line.

(-) CONN, Reports surprise adjusted Q1 net loss of $0.31 per share, missing Street view looking for $0.06 per share profit. Revenue climbs 6% to $389.1 mln, also lagging $391 mln analyst mean. Lowers FY17 sales outlook.

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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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