Mead Johnson Nutrition
The 10-second takeaway
For the quarter ended March 31 (Q1), Mead Johnson Nutrition beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.
Gross margins increased, operating margins dropped, net margins were steady.
Mead Johnson Nutrition reported revenue of $1.04 billion. The 11 analysts polled by S&P Capital IQ anticipated sales of $1.02 billion on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $986.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.85. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.85 per share. GAAP EPS of $0.85 for Q1 were 6.3% higher than the prior-year quarter's $0.80 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.3%, 20 basis points better than the prior-year quarter. Operating margin was 24.0%, 200 basis points worse than the prior-year quarter. Net margin was 16.6%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.04 billion. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $4.15 billion. The average EPS estimate is $3.30.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 76 members out of 92 rating the stock outperform, and 16 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Mead Johnson Nutrition a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mead Johnson Nutrition is outperform, with an average price target of $79.29.
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