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Mead Johnson Acquires Bega's Strategic Capabilities Business
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Mead Johnson Nutrition Company , a leading name in pediatric nutrition recently inked an agreement with Bega Cheese Limited. As per deal, Mead Johnson will acquire spray drying and finishing capabilities business for its products in Australia from the latter.
Bega Cheese is one of the Australia’s leading dairy product companies whose relationship with Mead Johnson dates back to 2009. In fact the reason behind such a successful tie up is that the former has been a certified ingredient supplier for MJN products. The deal therefore builds on this strong existing venture between the two companies, which is expected to close in the second quarter of 2017.
The Australian dairy major is known globally for its high-quality dairy sourcing and its environmentally responsible operations. Moving ahead, Mead Johnson considers that these very familiar advanced operations will be a perfect fit for its global supply chain network with the motto of improving the quality of its products.
Furthermore, Mead Johnson’s management claims that Bega’s supply chain flexibility is vital for its pediatric nutrition category. The latest acquisition is expected to further strengthen the ability to protect and expand growth in China by creating both additional capacity and the ability to adapt to a changing regulatory environment.
Another purpose behind the purchase move by the company is to become more consumer-centric. The company expects that the buyout of the supply chain will allow the management to better respond to evolving consumer preferences and to compete effectively in additional market segments in China.
Hence, even though Mead Johnson recently reported dismal fourth-quarter earnings, the company performed well in China. In fact, the company rapidly drove important strategic changes in the China business by making investments in building new growth platforms. Sales of baby stores within China grew stronger in the reported quarter.
Mead Johnson is currently trading above the Zacks categorized Food-Misc/Diversified industry. In the past one month the stock climbed 4.1%, way higher than the 0.7% gain of the broader industry. This may be due to the company’s strategic initiative – Project Fuel for Growth, progress in product innovation and full emphasis on expanding foothold in China.
On the flip side, the company’s recent earnings estimates have not at all been encouraging. The current quarter has seen no upward revision compared to one downward revision in the past two months. As a result the current quarter consensus estimate has fallen by 9.8% over the same time frame.
This extremely bearish estimate revision trend justifies Mead Johnson’s current Zacks Rank #5 (Strong Sell) suggesting us to maintain a cautious stance on the stock.
Glaukos gained over 100% in the last one year in comparison to the S&P 500’s gain of 18.9%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 26.4% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared to the industry average of 15.2%.
Everything You Need to Know About Snapchat BEFORE It Goes Public
You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day 1?
In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months.
Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>
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Mead Johnson Acquires Bega's Strategic Capabilities Business
Mead Johnson Nutrition Company , a leading name in pediatric nutrition recently inked an agreement with Bega Cheese Limited. As per deal, Mead Johnson will acquire spray drying and finishing capabilities business for its products in Australia from the latter.
Bega Cheese is one of the Australia’s leading dairy product companies whose relationship with Mead Johnson dates back to 2009. In fact the reason behind such a successful tie up is that the former has been a certified ingredient supplier for MJN products. The deal therefore builds on this strong existing venture between the two companies, which is expected to close in the second quarter of 2017.
The Australian dairy major is known globally for its high-quality dairy sourcing and its environmentally responsible operations. Moving ahead, Mead Johnson considers that these very familiar advanced operations will be a perfect fit for its global supply chain network with the motto of improving the quality of its products.
Mead Johnson Nutrition Company Price
Mead Johnson Nutrition Company Price | Mead Johnson Nutrition Company Quote
Furthermore, Mead Johnson’s management claims that Bega’s supply chain flexibility is vital for its pediatric nutrition category. The latest acquisition is expected to further strengthen the ability to protect and expand growth in China by creating both additional capacity and the ability to adapt to a changing regulatory environment.
Another purpose behind the purchase move by the company is to become more consumer-centric. The company expects that the buyout of the supply chain will allow the management to better respond to evolving consumer preferences and to compete effectively in additional market segments in China.
Hence, even though Mead Johnson recently reported dismal fourth-quarter earnings, the company performed well in China. In fact, the company rapidly drove important strategic changes in the China business by making investments in building new growth platforms. Sales of baby stores within China grew stronger in the reported quarter.
Mead Johnson is currently trading above the Zacks categorized Food-Misc/Diversified industry. In the past one month the stock climbed 4.1%, way higher than the 0.7% gain of the broader industry. This may be due to the company’s strategic initiative – Project Fuel for Growth, progress in product innovation and full emphasis on expanding foothold in China.
On the flip side, the company’s recent earnings estimates have not at all been encouraging. The current quarter has seen no upward revision compared to one downward revision in the past two months. As a result the current quarter consensus estimate has fallen by 9.8% over the same time frame.
This extremely bearish estimate revision trend justifies Mead Johnson’s current Zacks Rank #5 (Strong Sell) suggesting us to maintain a cautious stance on the stock.
Key Picks
Some better-ranked medical stocks are Glaukos Corporation (GKOS - Free Report) , Cardiovascular Systems and Neogen Corp. (NEOG - Free Report) . Glaukos sports a Zacks Rank #1 (Strong Buy), while Cardiovascular Systems and Neogen carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos gained over 100% in the last one year in comparison to the S&P 500’s gain of 18.9%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 26.4% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared to the industry average of 15.2%.
Everything You Need to Know About Snapchat BEFORE It Goes Public
You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day 1?
In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months.
Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>