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Sector Update: Consumer

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Consumer stocks were little changed this afternoon with shares of consumer staples companies in the S&P 500 falling less than 0.1%. Shares of consumer discretionary firms in the S&P 500 were ahead about 0.1%.

In company news, Smith & Wesson ( SWHC ) declined Wednesday after the gun manufacturer announced a smaller Q1 profit compared with year-ago levels and forecast per-share earnings and revenue for the current quarter and for FY15 trailing Wall Street estimates.

SWHC shares recently were down slightly over 13% at $11.37 each, earlier sinking to a session low of $11.26 a share. The stock has traded within a 52-week range of $10.25 to $17.28 a share, rising nearly 19% over the past 12 months.

The company last night reported Q1 income from continuing operations of $14.6 million, or $0.26 per share, down from a $26.5 million profit during the same quarter last year but beating the Capital IQ consensus by $0.01 per share.

Revenue declined 22.9% year over year to $131.9 million, also topping estimates by around $2.47 million.

For the current quarter, the company is projecting GAAP earnings in a range of $0.04 to $0.08 per share, lagging the Street view by at least $0.19 per share. It also sees revenue coming in between $100 million to $110 million, trailing estimates by at least $25.62 million.

For FY15, SWHC is expecting to earn $0.89 to $0.94 per share on between $530 million to $540 million in revenue. Analysts, on average, are looking for GAAP earnings of $1.34 per share on around $595.85 million in revenue.

In other sector news,

(+) MPAA, (+7.2%) Prices public offering of 2.4 mln shares of its common stock at $26 each, a 6.6% discount to Tuesday's closing price. The company expects around $58.1 million in net proceeds after paying underwriter discounts and other offering costs.

(-) VPCO, (-11.5%) Terminates asset purchase from Vapor International after failing to reach agreement on certain operational and financial matters. Neither firm will responsible for any break-up fees or reimbursement costs.

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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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