Mead Johnson Nutrition (MJN) has a market cap of $14.9 billion. It rose by 0.04% to close at $79.99 per share on September 8, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -6.0%, -9.7%, and 2.4%, respectively, on the same day. MJN is trading 6.3% below its 20-day moving average, 9.1% below its 50-day moving average, and 1.4% below its 200-day moving average.
Related ETFs and peers
The Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) invests 3.1% of its holdings in Mead Johnson Nutrition. The ETF tracks an equal-weighted index of large-cap US consumer staples stocks drawn from the S&P 500. The YTD price movement of RHS was 7.4% on September 8.
The iShares Russell 3000 ETF (IWV) invests 0.08% of its holdings in Mead Johnson Nutrition. The ETF tracks a cap-weighted index that measures the investable US equities market, covering the entire market-cap spectrum, including micro-caps.
The market caps of MJN’s competitors are as follows:
Mead Johnson Nutrition declares dividend
Mead Johnson Nutrition has declared a regular quarterly dividend of $0.42 per share on its common stock. The dividend is payable on October 3, 2016, to shareholders of record at the close of business on September 19, 2016.
Performance of Mead Johnson in 2Q16
Mead Johnson Nutrition reported 2Q16 net sales of $941.5 million, a fall of 8.8% from the net sales of $1.0 billion in 2Q15. Sales from its Asia, Latin America, and North America and Europe segments fell by 11.1%, 16.1%, and 0.62%, respectively, between 2Q15 and 2Q16. The company’s gross profit margin and EBIT (earnings before interest and tax) fell by 1.3% and 6.5%, respectively.
Its net income and EPS (earnings per share) fell to $155.1 million and $0.83, respectively, in 2Q16, compared with $162.9 million and $0.80 in 2Q15. It reported non-GAAP (generally accepted accounting principles) EPS of $0.88 in 2Q16, a rise of 15.8% from 2Q15.
MJN’s cash and cash equivalents rose by 0.86% and its inventories fell by 3.9% between 4Q15 and 2Q16. Its current ratio rose to 2.3x in 2Q16, compared with 2.1x in 4Q15.
The company reported that “additional savings opportunities of $60 million have been identified within Fuel for Growth, resulting in expected total cost savings of approximately $180 million by 2018. The program is ahead of schedule and is now expected to deliver approximately $75 to $80 million of savings in 2016.”
The company has made the following projections for 2016:
- sales 0%–2% lower than in 2015 on a constant dollar basis, or 5%–7% lower on a reported basis, reflecting increased customs at border points in China, a rise in trade investments in China, and a fall in the US market share in 1H16
- GAAP EPS in the range of $2.91–$3.03
- non-GAAP EPS in the range of $3.48–$3.60
In the next part of this series, we’ll discuss Ford Motor (F).