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DRI

Consumer Sector Update for 06/27/2017: DRI,JCP,P

Top Consumer Stocks

WMT +0.62%

MCD -0.06%

DIS +0.19%

CVS +0.89%

KO -0.70%

Consumer stocks were retreating Tuesday, with shares of consumer staples companies in the S&P 500 dropping over 0.6% while shares of consumer discretionary firms in the S&P 500 were falling almost 0.3%.

In company news, Darden Restaurants ( DRI ) was trading sharply higher on Tuesday, with the restaurant chain earlier today serving up a new record high of $95.22 a share after this morning reporting fiscal Q4 financial results exceeding Wall Street expectations and forecast above-consensus FY18 net sales as well as boosting its quarterly dividend by 12.5% over its most recent distribution.

Excluding one-time items, the company earned $1.18 per share during the three months ended May 28, topping the Capital IQ consensus by $0.03 per share. Net sales rose 8.1% over the same quarter last year to $1.94 billion, also beating the $1.86 billion Street view. Same-restaurant sales increased 3.3% for the quarter compared with the year-ago period.

Looking forward to the new year ending next May, Darden is projecting adjusted per-share earnings in a range of $4.38 to $4.50, straddling the $4.42 per share analyst mean. It also sees FY18 net sales rising between 11.5% to 13% over last year to a span of $7.99 billion to $8.10 billion. Analysts, on average, are looking for $7.89 billion in FY18 net sales.

The company also increased its upcoming dividend to $0.63 per share, up from its prior distribution of $0.56 per share and payable August 1 to shareholders of record on July 10.

In other sector news,

(+) JCP, (+4.2%) Gordon Haskett raises investment rating to Hold from Reduce and sets a $4.50 per share price target.

(-) P, (-1.7%) CEO Tim Westergren steps down, effective immediately, and is replaced on an interim basis by chief financial officer Naveen Chopra. Company president Mike Herring and chief marketing officer Nick Bartle also are leaving Pandora.

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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