We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mead Johnson: Strong Q1 on Overseas Growth & Strategies
Read MoreHide Full Article
On Jun 6, we issued an updated research report on Glenview, IL-based Mead Johnson Nutrition Company – a global leader in pediatric nutrition, especially for infants and children. The company currently carries a Zacks Rank #2 (Buy).
Mead Johnson embarked on a promising journey this year, posting square beats in the first quarter. We are particularly encouraged by the company’s progress in its Chinese business during the quarter, with its fully imported product line reflecting solid growth.
At present, Mead Johnson markets its products internationally in more than 50 countries and aims to expand its realm even further in the overseas market, going forward. This is evident from the substantial progress that the company has made internationally despite the macroeconomic turmoil witnessed in different regions.
In Mexico, Mead Johnson got off to a strong start with its modifier brands recovering somewhat from the weakness observed in mid-2015. Moreover, the company’s infant formula and toddler business gained market share in the first quarter as new packaging and revised messaging behind an improved formulation resonated with consumers. In Colombia too, the company witnessed increased market share which in turn drove double-digit sales growth in the economy.
Further, Mead Johnson has lately adopted a handful of strategic initiatives to effectively improve its operations. In the second quarter of 2015, the company launched Project Fuel for Growth, which is expected to reshape its income statement by increasing operating expense productivity. Evidently, in the first quarter, this initiative helped the company cut down $20 million of its expenses from the prior-year quarter.
On the flip side, unfavorable currency translation continues to be a major dampener for the stock, accounting for an adverse impact of 600 basis points and 10 cents on the company’s first-quarter sales and EPS, respectively.
During the first quarter, Mead Johnson witnessed an increase in price-based competition and channel shifts in China that impacted sales growth and required management to boost additional investment to protect its competitiveness. Intensifying competition and excessive reliance on large customers also pose threats to the stock.
Key Picks in the Sector
Other favorably ranked medical stocks are Baxter International Inc. (BAX - Free Report) , Boston Scientific Corporation (BSX - Free Report) and LeMaitre Vascular, Inc. (LMAT - Free Report) . While Baxter sports a Zacks Rank #1 (Strong Buy), both Boston Scientific and LeMaitre Vascular carry a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Mead Johnson: Strong Q1 on Overseas Growth & Strategies
On Jun 6, we issued an updated research report on Glenview, IL-based Mead Johnson Nutrition Company – a global leader in pediatric nutrition, especially for infants and children. The company currently carries a Zacks Rank #2 (Buy).
Mead Johnson embarked on a promising journey this year, posting square beats in the first quarter. We are particularly encouraged by the company’s progress in its Chinese business during the quarter, with its fully imported product line reflecting solid growth.
At present, Mead Johnson markets its products internationally in more than 50 countries and aims to expand its realm even further in the overseas market, going forward. This is evident from the substantial progress that the company has made internationally despite the macroeconomic turmoil witnessed in different regions.
In Mexico, Mead Johnson got off to a strong start with its modifier brands recovering somewhat from the weakness observed in mid-2015. Moreover, the company’s infant formula and toddler business gained market share in the first quarter as new packaging and revised messaging behind an improved formulation resonated with consumers. In Colombia too, the company witnessed increased market share which in turn drove double-digit sales growth in the economy.
Further, Mead Johnson has lately adopted a handful of strategic initiatives to effectively improve its operations. In the second quarter of 2015, the company launched Project Fuel for Growth, which is expected to reshape its income statement by increasing operating expense productivity. Evidently, in the first quarter, this initiative helped the company cut down $20 million of its expenses from the prior-year quarter.
On the flip side, unfavorable currency translation continues to be a major dampener for the stock, accounting for an adverse impact of 600 basis points and 10 cents on the company’s first-quarter sales and EPS, respectively.
During the first quarter, Mead Johnson witnessed an increase in price-based competition and channel shifts in China that impacted sales growth and required management to boost additional investment to protect its competitiveness. Intensifying competition and excessive reliance on large customers also pose threats to the stock.
Key Picks in the Sector
Other favorably ranked medical stocks are Baxter International Inc. (BAX - Free Report) , Boston Scientific Corporation (BSX - Free Report) and LeMaitre Vascular, Inc. (LMAT - Free Report) . While Baxter sports a Zacks Rank #1 (Strong Buy), both Boston Scientific and LeMaitre Vascular carry a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>