Consumer sector update for 10/18/2021: SONY, ACI, VIAC, ATUS, SAH
VSConsumer stocks were broadly mixed in Monday’s session, with the SPDR Consumer Staples Select Sector (XLP) ETF losing 0.5% while the SPDR Consumer Discretionary Select Sector (XLY) ETF was up 1.2%.
In company news, the Sony Group (SONY) dipped slightly after saying its Sony Pictures Entertainment unit agreed to sell its mobile and online gaming platform GSN Games to private video game company Scopely. for about $ 1 billion. Scopely will fund 50% of the purchase price in cash, with the remainder to be funded by preferred stock and provide Sony Pictures with an undisclosed minority stake.
ViacomCBS (VIAC) was down 1.1%, retracing most of its morning decline, after the TV and movie company renewed its distribution deal with Altice USA (ATUS), the deal also including services Paramount +, Showtime OTT and Pluto streaming services from ViacomCBS for clients. on Altice USA’s Optimum and Suddenlink platforms. Financial terms were not disclosed. ViacomCBS CEO Naveen Chopra also reportedly said Paramount + had received “huge momentum” during a JPMorgan virtual investor conference that aired on Monday.
Sonic Automotive (SAH) slipped 1.9% after the car dealership valued a $ 1.15 billion senior bond private placement on Friday night, consisting of $ 650 million senior bonds 4.625% due 2029 and $ 500 million 4.875% senior bonds due 2031. The net proceeds will help finance Sonic’s proposed acquisition of RFJ Auto Partners and repurchase all of its subordinated bonds from first ranking at 6.125% maturing in 2027.
Among the winners, Albertsons (ACI) rose 3.7% after reporting net income and non-GAAP revenues for its fiscal second quarter ended September 11, beating analyst estimates amid a surprise increase comparable sales from last year’s levels and the grocery chain also increasing its FY22 profit forecast. Excluding one-off items, the company earned $ 0.64 per share on $ 16.51 billion in revenue, beating Capital IQ’s consensus of $ 0.45 per share and $ 15.89 billion, respectively. .
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