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Mead Johnson Nutrition Declares Dividend of $0.41 Per Share

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Price movement

Mead Johnson Nutrition Company (MJN) has a market cap of $13.5 billion. It rose 1.2% to close at $72.85 per share on December 14, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.16%, 0.83%, and -6.3%, respectively, on the same day.

MJN is now trading 1.1% above its 20-day moving average, 3.1% below its 50-day moving average, and 10.6% below its 200-day moving average.

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Related ETF and peers

The Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) invests 2.9% of its holdings in Mead Johnson Nutrition. The YTD price movement of RHS was 3.0% on December 14.

The market caps of MJN’s competitors are as follows:

  • WhiteWave Foods (WWAV): $9.8 billion
  • Post Holdings (POST): $5.0 billion
  • Dean Foods (DF): $1.9 billion

MJN declared a dividend

Mead Johnson Nutrition has declared a regular quarterly dividend of $0.4125 per share on its common stock. The dividend is payable on January 6, 2017, to shareholders of record at the close of business on December 23, 2016.

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Mead Johnson’s performance in 3Q16

Mead Johnson Nutrition reported 3Q16 net sales of $937.5 million, which is a YoY (year-over-year) fall of 4.1% from the net sales of $977.5 million in 3Q15. Sales from Asia, Latin America, and North America and Europe fell 2.9%, 13.0%, and 0.79%, respectively, between 3Q15 and 3Q16. The company’s gross profit margin narrowed ten basis points and its EBIT (earnings before interest and tax) grew 120 basis points.

Its net income fell to $149.3 million and its EPS (earnings per share) rose to $0.80 in 3Q16, as compared with $155.2 million and $0.77, respectively, in 3Q15. It reported non-GAAP (generally accepted accounting principles) EPS of $0.87 in 3Q16, a rise of 8.7% over 3Q15. MJN’s cash and cash equivalents rose 8.3%, and its inventories fell 1.8% between 4Q15 and 3Q16.

Projections

The company has made the following projections for fiscal 2016:

  • sales 2%–3% lower than 2015 on a constant dollar basis, or 6%–7% lower on a reported basis
  • GAAP EPS in the range of $2.80 to $2.87
  • non-GAAP EPS in the range of $3.43 to $3.50

For an ongoing analysis of this sector, please visit Market Realist’s Consumer Discretionary page.

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