Consumer Stocks Mixed; Mondelez Near 19-Month High After Q1 EPS Beat, Plans to Form New Coffee Venture

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Consumer stocks were mixed Wednesday afternoon, with shares of consumer staples companies in the S&P 500 advancing about 0.7% while shares of consumer discretionary firms in the S&P 500 were down 0.5%.

In company news, Mondelez International ( MDLZ ) was up more than 7% in mid-day trade, with shares earlier climbing to a 19-month high after Q1 profit for the packaged foods company beat Wall Street expectations.

Adjusted per-share earnings for the company during the three months ended March 31 were $0.39, topping the Capital IQ consensus by $0.04 per share. Revenue fell 1.2% year over year to $8.64 billion, matching estimates.

The company also announced plans to combine its coffee business with D.E Master Blenders 1753 B.V., creating a create a pure-play coffee company to be called Jacobs Douwe Egberts and expected to generate more than $7 billion in yearly revenue. The new partnership will sell MDLZ's Gevalia, Tassimo and Jacobs brands as well as the Senseo and Douwe Egberts brands from D.E. Master Blenders, which was formed through a spinoff of Sara Lee's one-time coffee business.

Possibly limiting gains, however, was MDLZ's paring its FY14 earnings outlook by $0.05 per share from its prior forecast to a new range of $1.67 to $1.72 per share, remaining in-line with the $1.71 per share consensus.

MDLZ shares were up 7.5% at $37.75 each in recent trade, earlier rising to their best levels since September 2012 at $38.47 a share.

In other sector news,

(+) EA, (+16.9%) Non-GAAP revenue falls 7% from year-ago levels to $914 mln, still topping consensus by $101.6 mln. Adjusted net income of $0.48 per share beats by $0.37. OKs $750 mln stock buyback program.

(-) WFM, (-19.07%) Q2 EPS of $0.38 misses by $0.03 per share. Revenue climbs 9.7% to $3.32 bln, matching estimates. Lowers FY14 earnings, revenue forecasts, trailing consensus views by at least $0.05 per share and $20 mln, respectively.

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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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