Mead Johnson Nutrition CO (NYSE:MJN) shares were up 21.41% on Thursday when approximately 24.47M shares were traded, against the average daily trading volume of 1.56M. Analysts at Credit Agricole recently upgraded the stock to Underperform from Buy. Mead Johnson Nutrition CO (NYSE:MJN) has a consensus buy rating, according to Zacks Investment Research. No analyst has rated the stock with a sell rating, 8 have assigned a hold rating, Zero says it’s a buy, and 2 have assigned a strong buy rating to the company.
The 52-week price range is $65.24-$93.36 and the company has a market capitalization of $15.59 billion.
Mead Johnson Nutrition CO (MJN) on January 26, 2017 announced its financial results for the quarter and year ended December 31, 2016.
Highlights are as follows:
- Fourth quarter gross sales were 3% below the prior year quarter on a reported basis and in-line with the prior year quarter on a constant dollar basis. Net sales were 7% below the prior year quarter on a reported basis and 3% below the prior year quarter on a constant dollar basis. The difference between gross sales and net sales growth rates reflects increases in ongoing trade investments.
- Full year 2016 net sales were 8% below the prior year on a reported basis and 3% below the prior year on a constant dollar basis. Excluding the impact of Venezuela, net sales for 2016 were 2% below the prior year on a constant dollar basis.
- Selling, general and administrative expenses decreased 19% in the fourth quarter compared to the prior year quarter as a result of the company’s Fuel for Growth program. The program delivered savings of approximately $90 million in 2016, above the high end of the expected range. Total cost savings to date are $110 million, with approximately $180 million expected by the end of 2018.
- Earnings before Interest and Income Taxes (EBIT) was 15% higher in the fourth quarter compared to the prior year quarter. Excluding Specified Items and the impact of foreign exchange, non-GAAP EBIT was 4% above the prior year quarter.
- Earnings per Share (EPS) for the fourth quarter was $0.91. Excluding Specified Items, non-GAAP EPS for the fourth quarter was $0.78. EPS for 2016 was $2.92. Excluding Specified Items, non-GAAP EPS was $3.40 for the full year.
- For 2017, the company expects full year net sales to be in the range of -3% to 0% compared to 2016 on a reported basis, and in the range of -1% to +2% compared to 2016 on a constant dollar basis. Based upon recent spot rates, the estimated adverse foreign exchange impact is approximately 2%. Sales on a reported basis will be impacted by future foreign exchange changes which cannot be estimated.
- The company expects 2017 GAAP EPS to be in the range of $3.05 to $3.20. GAAP EPS guidance includes estimated adverse foreign exchange impacts of approximately $0.20, based on recent spot rates. GAAP EPS will be impacted by future foreign exchange changes and potentially significant future specified mark-to-market pension adjustments which cannot be estimated. Specified Items such as charges related to Fuel for Growth and other items are estimated to be $0.10 in 2017. The company expects non-GAAP EPS of $3.35 to $3.50 on a constant dollar basis.
“In the fourth quarter we continued to make progress with a series of important strategic transitions in key markets. Our imported products again grew strongly in China – and we doubled our sales volume via e-commerce out of Hong Kong over the prior quarter. Though it will take some time for us to complete the transition phase we are currently in, we are encouraged by early signs our plans are working,” said Kasper Jakobsen, Chief Executive Officer.