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How Did WhiteWave Foods’ Stock React to 4Q15 Earnings?

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Stock price performance

On February 11, 2016, The WhiteWave Foods Company (WWAV) reported its 4Q15 and 2015 earnings. Management discussed the results on the same day after the market opened, and the stock fell ~1% on the day. However, it rose 7% on February 12 to close at $36.09 with accelerated growth in earnings in 4Q15. Revenue was also close to analysts’ expectations.

The stock rose ~5% on November 9, reacting to the company’s strong performance in 3Q15. The stock has fallen 14% since the 3Q15 earnings release. The stock has fallen ~4% so far in 2016 as of yesterday and has fallen 6% in the last two months. WWAV rose 12% in 2015 due to the company’s ongoing positive earnings and revenue growth trends. It rose another 3% in yesterday’s trade and closed at $37.30. The stock’s price movements on YTD (year-to-date) and month-to-date bases are -4.1% and -1.2%, respectively. WWAV has risen 11.0% on a trailing-five-day basis.

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Peers in the industry

WhiteWave Foods, based in Denver, Colorado, is a consumer packaged food and beverage company. Its peers in the industry include General Mills (GIS), The Kraft Heinz Company (KHC), and McCormick & Company (MKC). MKC has risen 7% so far in 2016. There hasn’t been much price movement for GIS and KHC so far in 2016. GIS, KHC, and MKC closed at $57.60, $72.30, and $90.30, respectively, on February 16.

The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests ~1% of its holdings in WWAV. The ETF closed at $90.58 on February 16 and has fallen 8.4% YTD. The PowerShares Dynamic Food & Beverage Portfolio (PBJ) invests 5.1% of its holdings in GIS and 2.7% of its holdings in MKC.

What to look for in this series

In this series, we’ll look at WWAV’s performance in 4Q15 and 2015. We’ll further discuss the company’s segmental performance in detail and look at the moving averages of WWAV and its peers. We’ll also take a look at analysts’ recommendations for the stock before the 4Q15 earnings release and the company’s guidance for 2016.

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