Top Consumer Stocks
Consumer stocks were narrowly mixed Wednesday, with shares of consumer staples companies in the S&P 500 sinking almost 0.4% in afternoon trading while shares of consumer discretionary firms in the S&P 500 were climbing nearly 0.1%.
Among consumer stocks moving on news:
- Magna International (MGA,MG.TO) dropped as much as 24% Wednesday after the Canadian auto-parts company trimmed its FY18 profit and sales forecasts, blaming the expected impact of US tariffs and a rising dollar. The company, whose Q2 financial results also missed analyst estimates, lowered its sales projections by $600 million compared with its prior guidance, now expecting between $40.3 billion to $42.5 billion in revenue this year but still straddling the Capital IQ consensus looking for $41.88 billion in FY18 sales. It also cut its outlook for non-GAAP FY18 earnings by $100 million to a new range of $2.3 billion to $2.5 billion.
In other sector news:
+ Vitamin Shoppe ( VSI ) rose to a 13-month high, climbing over 28% to its best share price since July 2017 at $10.40, after reporting a surprise Q2 profit and net sales also exceeding Wall Street expectations. Excluding one-time items, the specialty retailer earned $0.30 per share during the three months ended June 30,
topping the two-analyst consensus expecting a $0.02 per share normalized Q2 net loss. Total sales slipped 1.1% year-over-year to $293.1 million, also beating the $283.4 million two-analyst mean.
- Ford ( F ) has turned narrowly higher Wednesday afternoon after reports the automaker will introduce an entry-level sport utility vehicle in China next year in a bid to revive lagging sales. The new Ford Territory was developed with local partner Jiangling Motors Corp and is one of around 50 new or redesigned vehicles Ford expects to launch in China through 2025. It also will begin sales of a redesigned Ford Focus later in 2018.
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