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How WhiteWave Foods’s Stock Has Performed since 3Q15

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Stock fell 17% since last quarter earnings

On November 9, 2015, WhiteWave Foods (WWAV) reported its 2015 third quarter results, and the stock rose ~5%, reacting to the company’s strong performance. The stock has fallen by 17% since its last quarter earnings release. The stock has fallen 7% so far in 2016 and 7.3% in the last two months as of February 5, 2016.

WWAV gained as much as 12% in 2015 owing to the company’s ongoing positive earnings and revenue growth trend. It closed at $36.0 on February 5. The stock’s price movements on a year-to-date and month-to-date basis are -7.5% and -4.6%, respectively. It is trading at -4.6% on a five-day-trailing basis.

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Management’s remarks

WhiteWave Foods chairman and chief executive officer Gregg Engles stated, “Our strong growth momentum in the first half of the year accelerated in the third quarter, with 17 percent sales growth resulting in our first ever quarter of sales over a billion dollars. Our market leading brands and industry leading innovation continue to drive strong organic growth across our businesses resulting in 11 percent adjusted organic constant currency net sales growth in the quarter.”

He added, “We also continued to execute on our strategic initiatives by closing on our Vega and Wallaby acquisitions, and strategically modified our credit facility to support our continued growth plans. Our focus remains on changing the way the world eats for the better while delivering outstanding growth in sales and profits to our investors.”

Peers’ stock performance

WhiteWave Foods’ peers in the industry include General Mills (GIS), Kraft Heinz (KHC), and McCormick & Company (MKC). GIS has fallen 3.6% so far in 2016, whereas McCormick has gained 2%. There has not been much price movement for KHC so far in 2016. The companies closed at $55.37, $72.78, and $85.89, respectively, on February 5.

The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests ~1% in WWAV. The ETF closed at $89.43 on February 5 and returned -9.6% year-to-date. The PowerShares Dynamic Food and Beverage ETF (PBJ) invests 5.1% in GIS and 2.7% in MKC.

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