Consumer Stocks Bruised Today; Dole Food Climb 10% on Spin-Out Discussions
BY Midnight Trader- 1:22 PM ET 07/20/2012
Top Consumer Stocks
Consumer stocks are lower today with the S&P Consumer Staples Index sliding about 0.7% and the S&P Consumer Discretionary Index down about 1.2%.
In company news, shares of Dole Food Company (DOLE) are up more than 10% today after announcing Q2 earnings $0.08 ahead of forecasts and said it has begun a strategic review, which could include spinning off its worldwide packaged foods business.
The company reported Q2 EPS of $0.80 on $1.78 billion in revenue. Analysts, on average, were expecting a $0.72 a share gain on $1.82 billion. It earned $0.94 a share last year while generating 10% more in revenue.
DOLE also said it is in talks with third parties interested in select business segments, adding it has hired Deutsche Bank Securities and Wells Fargo Securities to assist with the strategic review. The company in May said its weighing a full or partial separation of one or more of its businesses through a spinoff or some other type of transaction.
In other sector news,
(+) EDU, (+13.2%) Chairman and CEO Michael Yu and other senior managers to buy up to $50 million of company's stock over next three months.
(+) VIA, (+0.4%) Reaches new deal with DirecTV (DTV), returning its 17 cable channels to the satellite carrier. Reportedly will be paid $600 million a year, a 20% increase over prior pact.
(-) SHW, (-0.8%) Nomura reiterates Buy rating with $160 price target.
(+) BGS, (+0.4%, near year highs) Reports Q2 EPS of $0.33 vs. $0.31 in analyst consensus. Revenues climb 14.8% to $148.6 million, or $6.34 million below forecasts.
(-) NSP, (-2.3%) Announces strategic alliance with nuTravel Technology Solutions LLC to create an easy-to-use system of booking and managing business travel.
(-) CMG, (-22.1%) Q2 revenues of $690.9 million lag analyst consensus by 2.1% but earnings top estimates, $2.56 vs. $2.30 a share. Projects FY12 same-store growth in mid-signle digits.