Markets

Consumer Sector Update for 11/09/2017: SQBG,ROKU,VSTO

Top Consumer Stocks

WMT +0.33%

MCD -1.76%

DIS +1.88%

CVS +0.20%

KO +0.15%

Consumer stocks have turned slightly higher again in late trade, with shares of consumer staples companies in the S&P 500 rising less than 0.1% while shares of consumer discretionary firms in the S&P 500 were climbing nearly 0.2%, recouping an earlier advance.

In company news, Sequential Brands Group ( SQBG ) dropped to its lowest share price since September 2012, sinking over 36% to $1.51 a share, after the women's and men's apparel company missed Wall Street estimates with its non-GAAP Q3 net income and sales.

Excluding one-time items, the company earned $0.10 per share during the three months ended Sept. 30, declining from a $0.12 per share adjusted profit during the year-ago period and lagging the Capital IQ consenus by $0.04 per share. Revenue fell 7.1% to $39 million during the just-concluded reporting period, also trailing the $43.66 million analyst mean.

On a GAAP basis, Sequential recorded a net loss of $24.2 million, or $0.38 per share, during the July-to-September quarter. That compares with Q3 net income of $0.02 per share on $42 million in revenue in 2016.

For the 12 months ending Dec. 31, the company is projecting FY17 revenue in a range of $165 million to $169 million, which includes a minimum of $120 million in contractually guaranteed royalties this year. Analysts, on average, are modeling $173.86 million in FY17 revenue.

In other sector news,

(+) ROKU, (+43.6%) Narrows pro forma net loss to $0.10 per share from a $0.17 per share loss last year and beating the Capital IQ consensus expecting a $0.29 per share GAAP net loss. Net sales climb 40% to $124.8 mln, also topping the $110.5 mln analyst mean. Sees Q4 sales between $175 mln to 190 mln, straddling the $177.1 mln Street view.

(-) VSTO, (-29.0%) Drops to a record low. Reports fiscal Q2 revenue of $587.3 mln, lagging the $588.9 mln consensus. Slashes outlook for adjusted FY18 EPS to $0.50 to $0.60 from prior range of $1.10 to $1.30 per share. Cuts FY18 revenue forecast to $2.24 bln to $2.26 bln from $2.36 bln to $2.42 bln. Street is at $1.23 per share on $2.39 mln in revenue.

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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