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Sector Update: Consumer

Consumer stocks are mixed, with shares of consumer staples companies in the S&P 500 holding a 0.1% advance while shares of consumer discretionary firms in the S&P 500 are down 0.7%.

In company news, Tyson Foods Inc ( TYN ) shares rose to a new all-time high Friday, with shares ahead more than 10% in recent trade after earlier posting better-than-expected Q1 earnings, helped by higher beef prices and strong chicken sales in its December quarter.

Net income attributable to the company climbed to $254 million during the quarter from $173 million during the same period last year, while per-share earnings rose to $0.72 from $0.49 per share, topping the Thomson Reuters consensus by $0.09 per share.

Total revenue rose nearly 5% year over year to $8.76 billion, roughly in-line with forecasts expecting $8.75 billion in sales. Chicken sales rose $61 million, or 2%, to $2.98 billion, while beef sales rose 7% over the year-ago period. Pork sales gained 4.5%.

The company also reaffirmed its FY14 guidance calling for $36 billion in sales, beating analyst estimate by around $300 million.

Chief Financial Officer Dennis Leatherby said during a conference call with analysts and investors that TSN is "confident" of growing EPS more than 23% this year over 2013 levels, according to reports. That would work out to at least $2.78 per share, based on the company's $2.26 profit in FY13. The Street is at $2.81 per share.

Shares were up 10.2% at $37.99 each in recent trade, climbing back within range of their intra-day at $38.25 a share.

In other sector news,

(+) CMG, (+13.8%) Q4 revenue climbs 20.7% year over year to $844.1 mln, topping analyst consensus by $17.87. EPS of $2.53 matches estimates. Sees FY14 same-store sales rising in low- to mid-single digits. Price target raised to $650 a share at RBC Capital.

(-) RHI, (-1.1%) Reports Q4 net income of $0.49 per share, trailing Capital IQ call by $0.01. Revenue slides 4.8% year over year to $1.08 bln, matching estimates.

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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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