Mead Johnson Nutrition Beats Analyst Estimates on EPS

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Mead Johnson Nutrition (NYS: MJN) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Mead Johnson Nutrition met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.


Gross margins dropped, operating margins dropped, and net margins improved.

Revenue details
Mead Johnson Nutrition reported revenue of $986.6 million. The 10 analysts polled by S&P Capital IQ expected to see a top line of $978.2 million on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $899.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.82. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.78 per share on the same basis. GAAP EPS of $0.80 for Q1 were 13% higher than the prior-year quarter's $0.71 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 62.1%, 230 basis points worse than the prior-year quarter. Operating margin was 25.2%, 270 basis points worse than the prior-year quarter. Net margin was 16.6%, 40 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.00 billion. On the bottom line, the average EPS estimate is $0.78.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 79 members out of 94 rating the stock outperform, and 15 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Mead Johnson Nutrition a green thumbs-up, and eight give it a red thumbs-down.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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