Mead Johnson 4Q results beat analysts' estimates
GLENVIEW, Ill. (AP) — Infant formula maker Mead Johnson said its net income surged 57 percent in its fourth quarter, driven by higher prices, cost control efforts and strong growth in Latin America and Asia.
The Glenview, Ill. company's adjusted results and revenue beat analysts' estimates. The stock climbed more than 4 percent before the market open Thursday.
For the three months ended Dec. 31, earnings were $134.2 million, or 66 cents per share. A year earlier the company earned $85.6 million, or 42 cents per share.
Stripping out severance and other items, earnings were 72 cents per share in the most recent quarter.
Analysts expected earnings of 68 cents per share, according to a FactSet survey.
Revenue increased 8 percent to $981.1 million from $911.3 million. Wall Street predicted $954.3 million in revenue.
Shares of Mead Johnson Nutrition Co. climbed $2.85, or 4.2 percent, to $71 in premarket trading.
Revenue for Asia and Latin America rose 10 percent to $663.5 million, while revenue for North America and Europe increased 4 percent to $317.6 million.
Full-year net income climbed 19 percent to $604.5 million, or $2.95 per share, from $508.5 million, or $2.47 per share, in 2011.
Adjusted earnings were $3.08 per share.
Annual revenue rose 6 percent to $3.9 billion from $3.68 billion.
Going forward, Mead Johnson expects 2013 adjusted earnings in a range of $3.22 to $3.30 per share.
Analysts forecast earnings of $3.34 per share.