Sector Update: Consumer
Consumer stocks were mixed this afternoon, with shares of consumer staples companies in the S&P 500 falling around 0.3%. Shares of consumer discretionary firms in the S&P 500 were ahead almost 0.6%.
In company news, shares of Education Management Corp ( EDMC ) tumbled Thursday, falling to a new record low after the for-profit educator reported another gaping quarterly net loss and reduced its full-year outlook although its Q3 adjusted net income and revenue beat analyst forecasts for the period.
Net loss for the three months ended March 31 was $467.6 million, or $3.71 per share, expanding on a $260.4 million loss last year. Excluding more than $509 million in asset-impairment charges for its Art Institutes reporting unit as well as other one-time charges, the company said it would have earned $20.4 million, or $0.16 per share, during the quarter, beating the Capital IQ consensus by $0.02 per share.
Revenue slipped 6.8% from year-ago levels to $595.2 million, edging out the Street view by around $2.94 million.
For the fiscal year ending in June, EDMC is now forecasting adjusted per-share earnings in a range of $0.03 to $0.05, down from its prior outlook in February looking for adjusted net income this year of $0.19 to $0.23 per share. Analysts, on average, have been expecting the company to turn in a $0.19 per share profit in FY14.
EDMC shares this morning fell more than 41% to a new, all-time low of $2.81 each, more recently rebounding somewhat to their current range around $2.92 a share, down 26.5%.
In other sector news,
(+) WTW, (+17.2%) Adjusted Q1 EPS of $0.31 crush Capital IQ consensus by $0.22 per share. Revenue falls 16.6% to $409.4 mln, exceeding Street view by around $10.2 mln. Projected FY14 EPS of $1.45 to $1.70, ex items, tops estimates by at least $0.05 per share.
(-) BYD, (-4.4%) Q1 net loss of $0.04 per share, ex items, was $0.05 worse than the Capital IQ consensus. Revenue fell 3.7% year over year to $708.3 mln, lagging estimates by $4.98 mln.
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