Mead Johnson Nutrition Company (MJN) is one of the leading providers of nutritional products for infants, children and expectant and nursing mothers. Its Enfa franchise that includes Enfamil infant formula accounts for almost 80% of the company’s net sales.
Currently, Mead Johnson has a Zacks Rank #3 (Hold) but that could change following its mixed fourth-quarter 2014 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:
Earnings: The Zacks Consensus Estimate remained steady at 88 cents per share over the last 60 days. Mead Johnson’s adjusted earnings per share of 92 cents beat this estimate by 4.5%.
Revenues: Mead Johnson posted revenues of $1.094 billion, missing the Zacks Consensus Estimate for revenues of $1.103 billion.
Key Stats: Revenue from Asia increased 0.8% to $548.6 million, while sales from Latin America dropped 3.7% y/y to $207.8 million. On the other hand, sales from North America/Europe increased 12.3% y/y to $337.8 million.
Major Factors: Mead Johnson’s business in the U.S. market performed especially well as the company gained market share and expanded its children’s business in that region. As the company enters 2015, management expects to face significant headwinds from a strengthening dollar and earnings to remain partially exposed to currency fluctuations. However management expects that lower commodity costs will allow the company to improve gross margins and invest incrementally on its brands.
Stock Price: Following the earnings release, share prices did not show any movement in the pre-market trading session.
Check back later for our full write up on this Mead Johnson earnings report later!
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