Why Shares of WhiteWave Foods Co Jumped

Updated
Why Shares of WhiteWave Foods Co Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of WhiteWave Foods Co gained as much as 11% today, and finished up 10% after turning in a strong fourth-quarter earnings report.

So what: The organic-foods maker topped estimates on both top and bottom lines, as earnings of $0.22 a share were up from $0.18 a year ago, and better than expectations at $0.20. Sales, meanwhile, improved 11.5%, to $679 million, ahead of the consensus at $663.8 million. CEO Gregg Engles said, "The results reflect continued strong organic growth across all businesses," and noted the addition of Earthbound Farm and a joint venture in China as promising future growth opportunities.


Now what: With those new revenue streams and continued growth expected from brands including Silk and Horizon, the company expects top-line growth for 2014 in the high twenties, in line with expectations at 29.1%, and organic growth of 7 to 8%. For the current quarter, it sees EPS of $0.18 to $0.20, and $0.90 to $0.94 for the full year. Analysts, meanwhile, expect per-share profits of $0.21 and $0.91, respectively. With a sixth manufacturing facility in North America set to open, and further investments in Europe, WhiteWave anticipates long-term growth, and it seems to be taking all the right steps to make it happen. Shares have nearly doubled in the last year; I'd expect them to keep moving higher.

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The article Why Shares of WhiteWave Foods Co Jumped originally appeared on Fool.com.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool owns shares of WhiteWave Foods. 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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