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S&P 500 (NYSE:SPY) component Mead Johnson Nutrition (NYSE:MJN) will unveil its latest earnings on Thursday, July 26, 2012. Mead Johnson Nutrition provides pediatric nutrition and related products which help improve the health and development of infants and children around the world.
Mead Johnson Nutrition Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 76 cents per share, a rise of 5.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 78 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 77 cents during the last month. For the year, analysts are projecting net income of $3.13 per share, a rise of 12.2% from last year.
Past Earnings Performance: Last quarter, the company beat estimates by 4 cents, coming in at profit of 82 cents a share versus the estimate of net income of 78 cents a share. It marked the fourth straight quarter of beating estimates.
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Stock Price Performance: Between June 21, 2012 and July 20, 2012, the stock price dropped $11.79 (-13.7%), from $85.87 to $74.08. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 13, 2012, when shares rose for six straight days, increasing 2.4% (+$1.91) over that span. It saw one of its worst periods between September 26, 2011 and October 4, 2011 when shares fell for seven straight days, dropping 9.5% (-$7.14) over that span.
A Look Back: In the first quarter, profit rose 12.4% to $164.2 million (80 cents a share) from $146.1 million (71 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 9.6% to $986.6 million from $899.8 million.
Wall St. Revenue Expectations: Analysts predict a rise of 7.3% in revenue from the year-earlier quarter to $1 billion.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 22% in the second quarter of the last fiscal year, 15.3% in the third quarter of the last fiscal year and 13.4% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Analyst Ratings: With six analysts rating the stock as a buy, none rating it as a sell and six rating it as a hold, there are indications of a bullish outlook.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.56 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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