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What: Shares of WhiteWave Foods Co (NYSE:WWAV) were riding higher today, gaining as much as 12% after a standout first-quarter earnings report.
So what: The maker of organic foods such as Silk soy milk saw strong company-wide growth in the quarter as revenue increased 36%, to $830.2 million, driving a 40% jump in earnings, to $0.22 a share. Both figures easily beat the analysts' view at $786.9 million and $0.19, respectively. Results got a boost from the company's January acquisition of Earthbound Farm, a maker of organic salads and other produce, which delivered the bulk of its sales growth. Excluding Earthbound Farm, sales grew 12% in the quarter.
Now what: CEO Gregg Engles called the company's organic growth "impressive," and said that all of its brands "delivered strong volume growth." WhiteWave is also preparing to launch venture in China at the end of the year, which should further juice its financial results. Finally, the food maker lifted its full-year guidance to a profit of $0.95-$0.98 per share, up from a previous range of $0.90-$0.94. Analysts had projected EPS of just $0.93. Updated revenue guidance was also better than expected as management sees sales growth in the low thirties versus the analyst consensus at 29.3%. Shares of WhiteWave have nearly doubled since its spinoff from Dean Foods in October 2012, and with organic growth, smart acquisitions, and an expansion into China coming up, I expect the stock to continue to move higher
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Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends WhiteWave Foods. The Motley Fool owns shares of WhiteWave Foods. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.