Markets

Sector Update: Consumer

Consumer stocks were moderately higher with shares of consumer staples companies in the S&P 500 adding about 0.3%. Shares of consumer discretionary firms in the S&P 500 were ahead about 0.4%.

In company news, SeaWorld Entertainment ( SEAS ) continued to tank Wednesday, falling to a record low after the theme-park chain on Wednesday reported weaker-than-expected Q2 results, with earnings and sales trailing the analyst consensus.

SEAS shares were down over 33% at $18.79 apiece in mid-day trade, earlier sinking to an all-time low of $19.67 a share.

Excluding one-time items, the company posted Q2 adjusted net income of $37.4 million, or $0.43 per diluted share, up from a $36.5 million profit last year and lagging the Capital IQ consensus by $0.17 per share.

On a GAAP-basis, the company earned $37.3 million, or $0.43 per diluted share, improving on $15.9 million net loss last year.

Revenue fell 1.5% year over year to $405.2 million, missing estimates by around $44.13 million.

SEAS also has authorized a $250 million stock-buyback program beginning Jan. 1, 2015.

Looking forward, the company is forecasting FY14 revenue to drop about 6% to 7% from year-ago levels, or about $1.36 billion to $1.37 billion, trailing estimates by at least $140 million.

In other sector news,

(+) MYCC, (+6.5%) Acquires Atlanta-based Sequoia Golf for $265 million, expanding its portfolio of private golf clubs by nearly 38% to 209, or nearly five times the size of its next largest competitor.

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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