Sector Update: Consumer Stocks Surging Amid Largely Positive Earnings, Sales for Final Quarter of 2020
01:49 PM EST, 02/05/2021 (MT Newswires) -- Consumer stocks were sharply higher in Friday trading, with the SPDR Consumer Staples Select Sector ETF climbing 1.2% while the SPDR Consumer Discretionary Select Sector ETF was rising 1.3%.
In company news, Magnite (MGNI) rallied Friday, at one point racing almost 35% higher to a best-ever $58.50 a share after announcing its acquisition of the connected TV and video advertising platform SpotX from Luxembourg-based media firm RTL Group for $560 million in cash and 14 million of its common shares valued at around $610 million. Magnite Friday also said it generated around $82 million in Q4 revenue, up 69% over year-ago levels and breezing past the $74 million Street view. SpotX produced $116 million in revenue during 2020, Magnite said.
Columbia Sportswear (COLM) climbed nearly 20% on Friday to touch a new all-time high of $112.21 a share after earlier reporting better-than-expected Q4 financial results and increasing its stock buyback program by another $400 million, adding to the $82.2 million still available for share repurchases under its existing authorization. The apparel company earned $1.44 per share during the three months ended Dec. 31 on $915.7 million in sales, topping the Capital IQ consensus expecting a Q4 profit of $1.29 per share on $868.6 million in sales.
Document Security Systems (DSS) dropped almost 31% to a record low of $3 a share after the specialty printer late Thursday priced an upsized $34.5 million offering of 12.3 million common shares at $2.80 apiece, or more than 35% below its last closing price. Net proceeds will be used to fund the company's new business lines as well as potential acquisitions and general corporate purposes.