Sector Update: Consumer
Consumer stocks were moderately lower with shares of consumer staples companies in the S&P 500 falling about 0.3%. Shares of consumer discretionary firms in the S&P 500 were down about 0.4%.
In company news, Corinthian Colleges Inc. ( COCO ) Friday recouped a portion of its steep declines in the previous session after yesterday warning it could shut down if the federal government further restricts its access to government funding.
Shares of the for-profit educator, which operates Everest College among other schools, lost nearly two-thirds of its value on Thursday after disclosing in a regulatory filing that proposed changes in how the U.S. Department of Education helps fund post-secondary schooling could push it into bankruptcy. The stock is up 16% at 32 cents a share in mid-day trade, climbing 4 cents off its all-time low set at yesterday's close.
Under new restrictions imposed by the department, COCO's ability to access federal funds will be delayed 21 days. Until recently, the company said, the $1.4 billion in federal loans and grants shared by its 72,000 students each year typically were available within 24 to 72 hours of request.
"If the company is unable to timely obtain alternate financing, the company's cash flows will not be sufficient to meet its obligations as they become due," COCO wrote in yesterday's filing, adding that would leave the company "unable to continue as a going concern."
In other sector news,
(+) KMX, (+18.1%) Q1 net income of $0.76 per share beats by $0.10. Revenue rises 13.3% year over year to $3.75 bln, topping Street view by around $180 mln. Used vehicle unit volume grew 3.4% over year-ago levels.
(-) SWHC, (-10.1%) GAAP Q1 earnings outlook lags Street view by at least $0.15 per share; projected revenue misses by at least $30.83 mln. FY15 EPS, revenue forecasts also trail consensus estimates. Weak outlook trumps better than expected Q4 results.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.