On Monday, Shares of Mead Johnson Nutrition Company (NYSE:MJN), dropped -1.76% to $96.22.
Mead Johnson Nutrition, declared its financial results for the quarter ended March 31, 2015.
- Constant dollar sales raised slightly more than 3 percent. Foreign currency translation reduced sales by 5 percent and stated sales reduced 2 percent.
- Gross margin improved to 64.0 percent, due to pricing and lower dairy costs.
- Non-GAAP EPS was up 7 percent to $1.09; GAAP EPS was $1.02.
- Company reaffirms full year 2015 non-GAAP guidance.
First Quarter Company Results
First quarter sales of $1,094.4 million were down from $1,113.3 million in the preceding year quarter. Constant dollar sales raised slightly more than three percent, driven by pricing. In aggregate, volume was flat due primarily to tough preceding year comparisons in the U.S. and China businesses.
Gross margin was 64.0 percent, up from 63.6 percent in the first quarter of 2014. Gross margin benefited from price enhances and lower dairy input costs. In gross profit, the impact of Euro denominated manufacturing costs partially offset the adverse effect of foreign exchange to sales.
Investments in demand-generation activities, in stated dollars, reduced contrast to the preceding year quarter due to foreign exchange impacts and the timing of promotional campaigns. Earnings before interest and income taxes (“EBIT”) totaled $285.2 million in the first quarter of 2015, contrast to $291.2 million for the comparative period in 2014.
The company’s effective tax rate (“ETR”) was 23.7 percent in the first quarter, contrast to 25.5 percent in the preceding year quarter. The lower ETR was primarily due to a favorable change in the geographic earnings mix.
Net earnings attributable to shareholders totaled $207.4 million, or $1.02 per diluted share, in the first quarter of 2015, contrast to $202.4 million, or $1.00 per diluted share, in the preceding year quarter. On a non-GAAP basis, net earnings attributable to shareholders totaled $222.2 million, or $1.09 per diluted share, for the first quarter of 2015, contrast to $206.1 million, or $1.02 per diluted share, for the same quarter a year ago. Higher gross margins, lower operating expenses and the ETR were the main drivers of earnings growth.
Mead Johnson Nutrition Company manufactures, distributes, and sells infant formulas, children’s nutrition, and other nutritional products. It offers routine infant formula products as a breast milk substitute for healthy infants for the use as the infant’s source of nutrition, in addition to a supplement to breastfeeding under the Enfamil Premium, Enfapro Premium, Enfamil A+, and Enfalac A+ names; and solutions products to address common feeding tolerance problems, counting spit-up, fussiness, gas, and lactose intolerance under the Enfamil Gentlease and Enfamil A.R names.
Shares of ResMed Inc. (NYSE:RMD), declined -1.75% to $64.55, during its last trading session.
ResMed, declared results for its quarter ended March 31, 2015. Revenue for the quarter was $422.5 million, a 6 percent enhance contrast to the quarter ended March 31, 2014 (a 13 percent enhance on a constant currency basis). Net income was $91.0 million, an enhance of 1 percent contrast to the quarter ended March 31, 2014. Diluted earnings per share for the quarter were $0.64, an enhance of 2 percent contrast to the quarter ended March 31, 2014. Non-GAAP diluted earnings per share for the quarter were $0.65, a 2 percent enhance contrast to the quarter ended March 31, 2014.
Analysis of third quarter results
- In the third quarter of fiscal year 2015, revenue in the Americas was $250.9 million, a 16 percent enhance over the preceding year’s quarter. Revenue in combined Europe and Asia Pacific was $171.6 million, a 6 percent decrease contrast to the quarter ended March 31, 2014 (a 9 percent enhance on a constant currency basis).
- Gross margin in the third quarter was 59.5 percent, lower than the preceding year, mainly due to declines in average selling prices, an unfavorable product and geographic mix, and an unfavorable impact from foreign exchange rate movements.
- Selling, general and administrative expenses were $116.3 million for the quarter, a 1 percent enhance (a 10 percent enhance on a constant currency basis) over the quarter ended March 31, 2014. SG&A expenses improved to 27.5 percent of revenue in the quarter, contrast to 28.9 percent in the quarter ended March 31, 2014.
- Research and development expenses were $27.0 million for the quarter, or 6.4 percent of revenue. R&D expenses reduced by 8 percent (a 4 percent enhance on a constant currency basis) contrast to the quarter ended March 31, 2014.
- Operating profit for the quarter was $105.9 million and cash flow from operations was $90.9 million.
- Amortization of attained intangible assets was $2.2 million ($1.6 million, net of tax) during the quarter. Stock-based compensation costs incurred during the quarter of $11.7 million ($8.2 million, net of tax) comprised of expenses associated with employee equity grants, and the company’s employee stock purchase plan.
ResMed Inc. develops, manufactures, distributes, and markets medical equipment for the diagnosis, treatment, and administration of respiratory disorders, with a focus on sleep-disordered breathing.
At the end of Monday’s trade, Shares of HCA Holdings, Inc. (NYSE:HCA), dwindled -1.75% to $76.38.
HCA Holdings, declared the following Webcast:
HCA 1Q 2015 Earnings Release Call on Tuesday, May 5, 2015 at 10:00 am central (11:00 am eastern).
HCA Holdings, Inc., through its auxiliaries, provides health care services in the United States.
Finally, Aetna Inc. (NYSE:AET), ended its last trade with -1.75% loss, and closed at $106.92.
Aetna, declared that its administration is planned to make presentations in May at the following events.
- On May 6, 2015, Shawn M. Guertin, executive vice president and CFO, is planned to speak at the Deutsche Bank 40th Annual Health Care Conference in Boston at 9:20 a.m. ET.
- On May 12, 2015, Shawn M. Guertin is planned to speak at the Bank of America Merrill Lynch 2015 Health Care Conference in Las Vegas at 10:00 a.m. PT (1:00 p.m. ET).
- On May 18, 2015, Karen S. Rohan, Aetna president, is planned to speak at the UBS Global Healthcare Conference in New York City at 2:30 p.m. ET.
Aetna Inc. operates as a health care benefits company in the United States. It operates through three segments: Health Care, Group Insurance, and Large Case Pensions. The Health Care segment offers medical, pharmacy benefit administration services, dental, behavioral health, and vision plans on an insured basis, and an employer-funded or administrative basis.
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