Mead Johnson Nutrition Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Mead Johnson Nutrition (NYS: MJN) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Mead Johnson Nutrition beat slightly on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share contracted.


Gross margins increased, operating margins dropped, net margins dropped.

Revenue details
 Mead Johnson Nutrition notched revenue of $1.06 billion. The 10 analysts polled by S&P Capital IQ looked for revenue of $1.04 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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

EPS details
 EPS came in at $0.84. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.83 per share. Non-GAAP EPS of $0.84 for Q2 were 1.2% higher than the prior-year quarter's $0.83 per share. GAAP EPS of $0.80 for Q2 were 1.2% lower than the prior-year quarter's $0.81 per share.

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 63.6%, 40 basis points better than the prior-year quarter. Operating margin was 21.9%, 300 basis points worse than the prior-year quarter. Net margin was 15.4%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

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

Next year's average estimate for revenue is $4.13 billion. The average EPS estimate is $3.23.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 84 members out of 103 rating the stock outperform, and 19 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Mead Johnson Nutrition a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mead Johnson Nutrition is hold, with an average price target of $82.96.

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The article Mead Johnson Nutrition Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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