Mead Johnson Nutrition beats by $0.01, reports revs in-line; guides FY16 EPS in-line, revs above consensus
- Reports Q3 (Sep) earnings of $0.87 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.86; revenues fell 4.1% year/year to $937.5 mln vs the $929.82 mln Capital IQ Consensus.
- In Asia, sales were 3% below the prior year quarter on a reported basis. Sales were negatively impacted by adverse foreign currency translation, mainly in China.
- In Latin America, sales were 13% below the prior year quarter on a reported basis. Sales were negatively impacted by adverse foreign currency translation, primarily in Argentina and Mexico.
- In North America/Europe, sales were 1% below the prior year quarter on a reported basis.
- Co lowers guidance for FY16, sees EPS of $3.43-3.50 (prior $3.48-3.60), excluding non-recurring items, vs. $3.49 Capital IQ Consensus Estimate; sees FY16 revs of decline of 6-7% to $3.79-3.83 bln (prior guidance: Low end of down 5-7% to ~$3.78-3.87 bln) vs. $3.78 bln Capital IQ Consensus Estimate.
- Sales may be lower due to market share weaknesses in several markets, notably in the U.S., as well as continued macroeconomic challenges in several emerging markets.
- "Given known headwinds over the next year, we anticipate only modest improvements to both our underlying sales and earnings per share in 2017. In this context, continued strong performance against our expense reduction targets will support our investment in longer term growth initiatives and protect our 'best in class' level of profitability. In the longer term, underlying fundamentals for our core category are still supportive of our growth ambitions. Hence, we remain committed to making the necessary investments in our future."