Why WhiteWave Foods Co Shares Surged

Is this meaningful? Or just another movement?

May 8, 2014 at 3:22PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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