Mead Johnson Nutrition Earnings: Everything You Must Know Now

Mead Johnson Nutrition Company (NYSE:MJN) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Mead Johnson Nutrition Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.66% to $0.85 in the quarter versus EPS of $0.82 in the year-earlier quarter.

Revenue: Rose 5.2% to $1.04 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mead Johnson Nutrition Company reported adjusted EPS income of $0.85 per share. By that measure, the company met the mean analyst estimate of $0.85. It beat the average revenue estimate of $1.02 billion.

Quoting Management: “We are pleased with our solid sales and earnings growth during the first quarter,” said Chief Executive Officer Stephen W. Golsby. “Sales growth was strong and broad-based across South Asia and Latin America. As expected, sales in China were down compared to last year, given higher market share in the first quarter of 2012, although we continued to deliver gains on a sequential basis, with first quarter market share higher than in the fourth quarter of 2012. Hong Kong experienced particularly strong sales growth, which we believe reflected heavy demand in anticipation of the March 1st implementation of a new regulation limiting exports into China. We are maintaining a cautious outlook on the ongoing impact, since retail demand in Hong Kong fell in March as the new regulation took effect. In the North America/Europe segment, we continued to make progress building non-WIC* market share in the United States, which mitigated the impact of several non-core businesses exited in 2012 and lower category consumption. During the quarter, we made noticeably higher demand-generation investments to drive sustainable growth. While mindful of the added uncertainty created by the new Hong Kong regulation, we remain confident in the strong growth of our business and continue to expect core sales to grow in the range of seven to eight percent in 2013.”

Key Stats (on next page)…

EPS increased 18.06% from $0.72 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.87 to a profit $0.85. For the current year, the average estimate has moved down from a profit of $3.34 to a profit of $3.29 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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