14 Mar 2018

Consumer Sector Update for 03/13/2018: MTOR,DWS,JBLU,DKS

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Top Consumer Stocks

WMT +0.02%

MCD +0.48%

DIS -1.49%

CVS -1.13%

KO +0.08%

Consumer stocks lost significant ground during Tuesday afternoon trading, with shares of consumer staples companies in the S&P 500 sinking less than 0.2% this afternoon while shares of consumer discretionary firms in the S&P 500 also fell nearly 0.8% shortly before the closing bell.

Among consumer stocks moving on news:

+ Meritor Inc. ( MTOR ) climbed over 5% on Tuesday, topping out at $23.30 a share, after the vehicle parts manufacturer late Monday announced several management changes, including adding responsibility for its trailer and components operations as well as procurement to chief financial officer Kevin Nowlan’s job duties. Prior to becoming CFO, Nowlan was vice president and controller at Meritor and also worked as treasurer and vice president of its shared services unit. In a related move, Carl Anderson becomes vice president for finance at the company, assuming responsibility for operational finance, shared services and accounting while also continuing to guide the treasury group as well as investor relations and mergers and acquisitions. The company also appointed Joe Plomin to be senior vice president and president for aftermarket, industrial and quality while Cheri Lantz assumes responsibility for Meritor’s engineering activities and remaining chief strategy officer. Mike Lei also named vice president for compensation and benefits. Also, Rob Speed stepped down as senior vice president and president of industrial, engineering and procurement after 13 years at the company to pursue other opportunities.

In other sector news:

+ DSW ( DSW ) rallied Tuesday, rising almost 12% to a session high of $21.90 a share, after the branded footwear and accessories seller reported above-consensus adjusted Q4 net income. Excluding one-time items, the company earned $0.38 per share, improving on a non-GAAP profit of $0.20 per share during the comparable period last year and beating the Capital IQ consensus call by $0.11 per share. Net sales during the three months ended Feb. 3 increase to $720 million from $674.6 million during the year-ago period but still falling short of the analyst projections expecting $728.5 million. Q4 comparable-store sales climbed 1.3% compared with a 7% decrease during the same quarter last year. For FY19, the company is expecting its revenue to decrease by 1% to 3% from prior-year levels while same-store sales are seen increasing in the low single percentage digits. It also sees adjusted FY19 earnings in a range of $1.52 to $1.67 per share, straddling the Street view expecting $1.64 per share. The company also increased its quarterly cash dividend by 25% over its most recent distribution to $0.25 per share, payable April 6 to shareholders of record on March 23.

+ JetBlue Airways ( JBLU ) climbed as much as 3% during Tuesday trading, reaching a session high of $22.69 a share, after the discount carrier reported a 6.8% rise in its preliminary February traffic levels over its year-ago traffic. Load factor was steady from February 2017 at 82.6% while the preliminary completion factor was 98.4% and its on-time performance was 74.6%. The airline also is expecting its Q1 revenue per available seat mile to grow between 3.5% to 5.5% compared with the first three months of 2017.

– Dick’s Sporting Goods ( DKS ) was trimmed its Tuesday decline to less than 3% after earlier sinking more than 9% to a session low of $29.53 a share after reporting a retreat in Q4 net income from year-ago levels despite a year-over-year increase in net sales. The company earned $1.22 per share during Q4, down from $1.32 per share during the same quarter last year although that still topped the Capital IQ consensus by $0.02 per share. Revenue grew to $2.66 billion from $2.48 billion in the year-ago quarter but missed the $2.73 billion analyst mean. The sporting goods retailer is projecting FY19 per-share earnings in a range of $2.80 to $3.00, straddling the Street view expecting $2.88 per share. Same store sales are expected to decline between 0% to a drop in the low single percentage digits.

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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