S&P 500 (NYSE:SPY) component Mead Johnson Nutrition Company (NYSE:MJN) reported higher profit for the second quarter as revenue showed growth. Mead Johnson Nutrition Company provides of pediatric nutrition and related products.
Mead Johnson Nutrition Company Earnings Cheat Sheet for the Second Quarter
Results: Net income for the processed and packaged goods company rose to $132.1 million (64 cents per share) vs. $121.4 million (59 cents per share) in the same quarter a year earlier. This marks a rise of 8.8% from the year earlier quarter.
Revenue: Rose 22% to $932 million from the year earlier quarter.
Actual vs. Wall St. Expectations: MJN reported adjusted net income of 72 cents per share. By that measure, the company beat the mean estimate of 69 cents per share. It beat the average revenue estimate of $878.7 million.
Quoting Management: “We are very pleased with our strong sales and earnings performance in the second quarter,” said Chief Executive Officer Stephen W. Golsby. “Our emerging markets business continued to deliver exceptional growth, led by China/Hong Kong and our markets in Latin America. It is clear that our investments in advertising and promotion, geographic expansion and product innovation are bearing fruit. We also saw significant sales growth in the U.S. driven by market share gains. We will face headwinds in the second half of the year from significantly higher commodity costs and more challenging comparisons with the prior year, but I’m pleased with the positive momentum in the business.”
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 16.3% and in the fourth quarter of the last fiscal year, the figure rose 55.6%.
Revenue has risen the past four quarters. Revenue increased 17.9% to $899.8 million in the first quarter. The figure rose 12.5% in the fourth quarter of the last fiscal year from the year earlier and climbed 15.8% in the third quarter of the last fiscal year from the year-ago quarter.
The company has now topped analyst estimates for the last three quarters. It beat the mark by 5 cents in the first quarter and by one cent in the fourth quarter of the last fiscal year.
(Source: Xignite Financials)