Mead Johnson Nutrition Sees 2016 Earnings In Line With Estimates - Quick Facts

(RTTNews) - While reporting its financial results for the fourth quarter today, Mead Johnson Nutrition Co. (MJN) provided earnings outlook for fiscal 2016 in line with analysts' estimates.

For fiscal 2016, the company expects full year constant dollar sales in a range of 0 percent to 2 percent above 2015 and adjusted earnings per share in the range of $3.48 to $3.60, based on current exchange rates.

On average, analysts polled by Thomson Reuters expect the company to earn $3.52 per share for the year on revenues of $4.00 billion. Analysts' estimates usually exclude special items.

The infant formulas and children's nutritional products maker said it expects to incur charges approximating $25 million to $30 million associated with the Fuel for Growth program in 2016. Specified items including charges related to Fuel for Growth are expected to be about $0.12 per share.

Therefore, the company forecast full-year reported earnings per share in the range of $3.36 to $3.48, excluding mark-to-market pension adjustments which cannot be estimated. The guidance includes an estimated adverse impact of current exchange rates as of January 2016, which is expected to be approximately $0.40 per share.

Kasper Jakobsen, Chief Executive Officer of Mead Johnson said, "As discussed during our Investor Day in October of last year we view 2016 as a year of transition as we invest heavily in reshaping our portfolio in China and boost investment in new channels there. We expect modest, single digit EPS growth as a strengthening dollar will continue to challenge the translation of our results."