Mead Johnson Nutrition Company is one of the leading providers of nutritional products for infants, children and expectant and nursing mothers. Its Enfa franchise that includes Enfamil infant formula accounts for almost 80% of the company’s net sales.

Currently, Mead Johnson has a Zacks Rank #3 (Hold) but that could change following its second-quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: The Zacks Consensus Estimate stands at 79 cents per share for past 7 days. Mead Johnson’s adjusted earnings per share of 88 cents beat this estimate by 11.4%.  

MEAD JOHNSON NU Price and EPS Surprise

MEAD JOHNSON NU Price and EPS Surprise | MEAD JOHNSON NU Quote

Revenues: Mead Johnson posted revenues of $941.5 million, missing the Zacks Consensus Estimate for revenues of $961.2 million.

Key Stats: Revenue from Asia decreased 11% to $456.2 million, while sales from Latin America dropped 16% y/y to $166.5 million. On the other hand, sales from North America/Europe dropped 1% y/y to $318.8 million.

Major Factors: Per management, despite facing near-term challenges, Mead Johnson made good progress with its portfolio and channel transformation in China. Currently the company aims at implementing more ambitious operating cost reductions. The company’s overall cash structure remains strong.

Stock Price: Following the earnings release, share prices did not show any movement in the pre-market trading session.

Check back later for our full write up on this Mead Johnson earnings report later!

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