Mead Johnson Nutrition misses by $0.03, misses on revs; guides FY17 EPS in-line
- Reports Q4 (Dec) earnings of $0.78 per share, $0.03 worse than the Capital IQ Consensus of $0.81; revenues fell 6.8% year/year to $901.6 mln vs the $923.43 mln Capital IQ Consensus.
- Co issues in-line guidance for FY17, sees EPS of $3.35-3.50 vs. $3.45 Capital IQ Consensus Estimate; expects full year net sales to be in the range of -3% to 0% compared to 2016 on a reported basis, vs. consensus of -1%, 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%.
- 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.
- "2017 will see us complete our strategic transition program. We expect some pressure on both topline and costs in the beginning of the year, and the impact of currency and rising dairy costs will likely weigh on results. The impact will be partially offset by momentum behind productivity initiatives in both cost of goods and operating expenses. As previously stated, we expect only very modest growth in both Sales and EPS on a constant dollar basis - with performance strengthening through the second half of the year."