Markets

Sector Update: Consumer Discretionary Stocks Turn Higher Late; Sky West Shares Grounded After Airline Trims Q2 Outlook

Top Consumer Stocks

WMT -0.25%

MCD +0.04%

DIS +1.11%

CVS -0.92%

KO -0.77%

Consumer stocks were mixed in late trade with shares of consumer staples companies in the S&P 500 declining about 0.5%. Shares of consumer discretionary firms in the S&P 500 reversed earlier declines and were up 0.2% just before the closing bell.

In company news, Sky West Inc. ( SKYW ) slid to a 22-month low Monday after the regional airline cut its Q2 outlook, citing subpar revenue during the quarter coupled with certain tax adjustments and valuation allowances of tax receivables and write-downs of ground handling equipment and other assets.

The company is now forecasting a net loss during the three months ended June 30 in a range of $12.0 million to $14.0 million, or between $0.23 to $0.28 per share, well under analyst estimates now looking for a $0.22 per share profit during the quarter.

It said Q2 revenue fell expected levels after missing incentive payments under its flying contracts with its airline partners as a result of lower on-time performance and completion of flights. The company also said new Federal Aviation Administration rules for crew qualifications and flight and duty rest rules increased costs.

The company expects to report its Q2 results next Tuesday, Aug. 6.

SKYW shares were down nearly 8% at $10.74 each in late afternoon trade, earlier falling to its lowest level since September 2012 at $10.55 a share. Over the past 12 months, the stock has declined slightly less than 30%.

In other sector news,

(+) FDO, Agrees to $8.5 bln buyout from Dollar Tree ( DLTR ), receiving $59.60 per share in cash and $14.90 in DLTR stock - or $74.50 for each FDO share - a 22.8% premium to Friday's close. Deal seen lifting first-year profits. DLTR up about 2.8%.

(-) MNST, Reduced to Neutral from Buy at UBS, which also cut its price target by $7 to $73 a share, citing valuation as well as discounted margin progression and a slowdown in top-line trends.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

DLTR SKYW

Other Topics

Commodities

Latest Markets Videos