Mead Johnson Nutrition Company Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Mead Johnson Nutrition Company (NYSE:MJN) will unveil its latest earnings on Thursday, October 27, 2011. Mead Johnson Nutrition provides pediatric nutrition and related products which help improve the health and development of infants and children around the world.

Mead Johnson Nutrition Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 77 cents per share, a rise of 35.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 66 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. For the year, analysts are projecting net income of $2.79 per share, a rise of 15.3% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 72 cents per share versus a mean estimate of net income of 69 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $934.1 million in revenue this quarter, a rise of 15.3% from the year ago quarter. Analysts are forecasting total revenue of $3.67 billion for the year, a rise of 16.9% from last year’s revenue of $3.14 billion.

Analyst Ratings: Analysts are bullish on this stock with five analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

A Look Back: In the second quarter, profit rose 8.8% to $132.1 million (64 cents a share) from $121.4 million (59 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 22% to $932 million from $764.2 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 17%, with the biggest boost coming in the most recent quarter when revenue rose 22% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 16.3% in the first quarter and 55.6% in the fourth quarter of the last fiscal year.

Competitors to Watch: Synutra Intl., Inc. (NASDAQ:SYUT), Feihe International Inc (NYSE:ADY), Wimm-Bill-Dann Foods OJSC (NYSE:WBD), Dean Foods Company (NYSE:DF) and Lifeway Foods, Inc. (NASDAQ:LWAY).

Stock Price Performance: During August 25, 2011 to October 21, 2011, the stock price had risen $5.71 (8.5%) from $67.09 to $72.80. The stock price saw one of its best stretches over the last year between June 22, 2011 and July 5, 2011 when shares rose for nine-straight days, rising 7.4% (+$4.83) over that span. It saw one of its worst periods between January 21, 2011 and February 2, 2011 when shares fell for nine-straight days, falling 6.7% (-$4.09) over that span. Shares are up $11.30 (+18.4%) year to date.

(Source: Xignite Financials)

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