WhiteWave Foods: Should You Pay 25 Times EBITDA For This High-Growth Flyer Like I Just Did?
James Sands • 25 Comments
James Sands • 25 Comments
WhiteWave Foods: Buy High, Sell Higher?
Thu, Apr. 14, 1:36 PM
- Morgan Stanley identifies 30 stocks for investors to snap up and hold until 2019.
- The investment firm narrowed its list by focusing on strong brands/franchises with distinct competitive advantages, while also scoring strong on pricing power, cost efficiency, and growth.
- The MS list includes Accenture (NYSE:ACN), Alphabet, Amazon.com, Apple, Blackstone Group (NYSE:BX),Comcast (NASDAQ:CMCSA), Constellation Brands (NYSE:STZ), CVS Health (NYSE:CVS), Danaher (NYSE:DHR), Dollar General (NYSE:DG), Estee Lauder (NYSE:EL), Facebook, First Republic Bank (NYSE:FRC), HCA Holdings (NYSE:HCA), International Business Machines (NYSE:IBM), JPMorgan Chase, L Brands (NYSE:LB), Mettler-Toledo (NYSE:MTD), NextEra Energy (NYSE:NEE), Nike (NYSE:NKE), Panera Bread (NASDAQ:PNRA), Philip Morris International (NYSE:PM), Public Storage (NYSE:PSA), Ross Stores (NASDAQ:ROST), SBA Communications(NASDAQ:SBAC), ServiceMaster (NYSE:SERV), T-Mobile (NASDAQ:TMUS), Visa (NYSE:V), WhiteWave Foods (NYSE:WWAV), and Zayo Group Holdings (NYSE:ZAYO).
Fri, Apr. 8, 1:16 PM
- Susquehanna analyst Pablo Zuanic sets aside four stocks as top picks in the food & beverage sector in an update to investors.
- Anheuser-Busch InBev (BUD +0.5%): "SAB deal benefits not in the BUD share price."
- Kraft Heinz (KHC +1.1%): "We have a strong conviction in the company maintaining its synergy pace and ability to expand margins."
- TreeHouse Foods (THS +0.4%): "Potential deal accretion" and "private label top-line momentum" are cited.
- WhiteWave Foods (WWAV -0.6%): "Our positive view is based on the growth potential of the company and its ability to drive growth by innovating to expand existent categories and enter new categories."
- All four stocks are given a Positive rating by Susquehanna.
Fri, Feb. 19, 11:40 AM
- WhiteWave Foods (WWAV +0.4%) still trades at a lower premium to peers than its historical average even after a nifty post-earnings rally (+13%), observes Susquehanna.
- Analyst Pablo Zuanic and team see WWAV as well-positioned to grow off its innovation and expansion of acquired brands. WhiteWave is ahead of conventional food/beverage companies in developing healthy products and has a scale advantage over niche players in the natural/organic sector.
- Susquehanna has the food stock rated at Positive.
- For more on WhiteWave, check out the slides or webcast from the company's CAGNY presentation.
Thu, Feb. 11, 8:57 AM
- WhiteWave Foods (WWAV +4.1%) reports organic sales rose 8% in Q4.
- Segment sales: Americas Foods & Beverages: $764.82M (+18%); Americas Fresh Foods: $128.44M (-5%); Europe Foods & Beverages: $134.37M (+6%).
- Adjusted gross margin rate increased 80 bps to 34.2%.
- Adjusted operating margin rate improved 150 bps to 11.1%.
Q1 Guidance: Net sales growth: +11% to +12% (+12% to +13% on a constant currency basis); Adjusted operating income growth: + Low double
digits %; Tax rate: high end of 33% to 34%; Adjusted diluted EPS: $0.23 to $0.24; Adjusted Diluted EPS Excluding China J.V.: $0.25 to $0.26.
FY2016 Guidance: Net sales growth: +10% to 11% (+11% to 12% on a constant currency basis); Adjusted operating income growth: + mid to
high teens %; Tax rate: 33% to 34; Adjusted diluted EPS: $1.27 to $1.31; Adjusted Diluted EPS Excluding China J.V.: $1.33 to $1.37; Capital expenditure: ~$325M to $350M.
Thu, Feb. 11, 8:02 AM
- WhiteWave Foods (NYSE:WWAV): Q4 EPS of $0.36 beats by $0.01.
- Revenue of $1.03B (+13.1% Y/Y) misses by $10M.
Wed, Feb. 10, 5:30 PM
- AAP, AB, ACOR, ALLE, ALU, AVP, AYR, BG, BTU, BWA, CCE, COR, CPLA, CVE, DBD, FAF, FLIR, GNC, GPI, GRA, HUN, INCY, INT, IVC, K, KKR, LC, LIOX, LPX, MANU, MFC, MGI, MOS, MWW, NCI, NICE, NILE, NLSN, NNN, NOK, NTWK, NWE, OZM, PAG, PDS, PEP, PNK, Q, RAI, SHPG, SON, STC, TAP, TCK, TEVA, TGH, THS, TIME, TRI, TRIP, TZOO, VG, WBC, WOOF, WSO, WWAV, WWE
Wed, Feb. 10, 8:37 AM
- Jefferies sees WhiteWave Foods (NYSE:WWAV) as a buying opportunity with shares lagging.
- The investment firm points to recent POS data points which suggest an acceleration in sales over the last four weeks.
- Estimates on WWAV have been whacked recently due chiefly to F/X concerns, not underlying demand.
- WWAV +1.0% premarket to $34.00.
Fri, Feb. 5, 6:58 PM
- Coca-Cola (NYSE:KO) was upgraded today to Neutral from Negative with a $40 price target, raised from $33, at Susquehanna, which speculates that KO could become a potential target for Anheuser-Busch InBev (NYSE:BUD) - following the merger deal with SABMiller - in the future if BUD decides it wants to enter the soft drink market.
- The firm also feels KO's North American profitability could be improved by better pricing in the U.S. and refranchising efforts; it also thinks KO could help its global growth platform with further M&A of its own, suggesting WhiteWave Foods (NYSE:WWAV) as a possibility.
- KO's fundamentals remain challenging, Susquehanna says, as 75% of earnings come from outside North America; dietary concerns remain an issue, especially around diet drinks; and the company’s ability to build a larger presence outside carbonated soft drinks remains questionable.
Fri, Jan. 29, 1:41 PM
- Susquehanna notes that a strong U.S. dollar is likely to force 2016 EPS estimates lower on major global food and beverage names.
- The blended drop vs. the U.S. dollar of the Euro, Canadian Dollar, UK Pound, Mexican Peso, and Brazilian Real is -10%, analyst Pablo Zuniac. Other firms are likely to have factored in a less disruptive F/X market with their 2016 estimates.
- Companies in harm's way include KO, MDLZ, BUD, TAP, GMCR, WWAV, CCE, KHC, and K.
- Related ETF: PBJ.
Dec. 15, 2015, 9:33 AM
- Egg prices fell 4.8% in November to follow a 3.8% slide in October.
- The level of egg prices is still 23.7% higher than a year ago, due largely to the avian flu issue earlier this year.
- Milk prices were also lower during November, down 0.7% M/M and 7.7% Y/Y. The broader dairy category saw price declines of 3.4% Y/Y and 0.6% M/M.
- These are some of the companies that talked about milk or egg prices being a factor during their most recent earnings conference call: CALM, KO, DF, WWAV, GIS, POST, KR, DG, OTCPK:PRRFY, BDBD, GTIM, BOBE, HRL, FLO, JJSF, DENN, MCD.
- BLS CPI data
Nov. 16, 2015, 1:59 PM
- WhiteWave Foods (WWAV -1.5%) announces it Blaine McPeak will fill the newly created position of Chief Operating Officer.
- McPeak is the President of Americas Foods & Beverages.
- The company also disclosed that CFO Kelly Haecker will retire on March 31, 2016 to be replaced by Greg Christenson who currently is the CFO of Americas Foods & Beverages.
Nov. 9, 2015, 10:00 AM
- WhiteWave Foods (WWAV +4.1%) reports organic sales rose 11% in Q3.
- Segment sales: Americas Foods & Beverages: $722.52M (+23%); Americas Fresh Foods: $147.30M (+4%); Europe Foods & Beverages: $134.81M (+4%).
- Adjusted gross margin rate grew 110 bps to 35.3%.
- Adjusted operating margin rate improved 70 bps to 10.2%.
Q4 Guidance: Net sales growth: +13% to +14% (+15% to +16% on a constant currency basis); Adjusted operating income growth: + high twenties
to low thirties %; Interest expense: $19M to $20M; Tax rate: ~34%; Adjusted diluted EPS: $0.32 to $0.33; Adjusted Diluted EPS Excluding China J.V.: $0.34 to $0.35; Interest Neutral Adj. Diluted EPS Excluding China J.V.: $0.34 to $0.35.
- FY2015 Guidance: Net sales growth: ~+13% (~+16% on a constant currency basis); Adjusted operating income growth: + low to mid twenties %; Interest expense: ~$58M to $59M; Tax rate: ~354; Adjusted diluted EPS: $1.10 to $1.11; Adjusted Diluted EPS Excluding China J.V.: $1.17 to $1.18; Interest Neutral Adj. Diluted EPS Excluding China J.V.: $1.23 to $1.24; Capital expenditure: ~$300M.
Nov. 9, 2015, 9:04 AM
- WhiteWave Foods (NYSE:WWAV): Q3 EPS of $0.33 beats by $0.02.
- Revenue of $1B (+16.6% Y/Y) beats by $25.14M.
Nov. 8, 2015, 5:30 PM
Sep. 4, 2015, 10:30 AM
- WhiteWave Foods (WWAV +0.5%) is beating market averages after William Blair initiates coverage on the food stock with an Outperform rating.
- The company is consider well-positioned to take advantage of the ongoing consumer shift to natural/organic foods, but valuation concerns and some exposure in China have held shares back from cresting $53.
Aug. 28, 2015, 11:10 AM
- There's plenty of precedent for the recent market action, says Morgan Stanley's Adam Parker, noting the market has dropped more than 5% 16 times since March 2009, and each time has moved on to new highs.
- His half-glass view is that the economy is in the middle of its longest expansion ever, and a less-active Fed, a nervous consumer maybe saving more, a lower oil price, and a flattish dollar all argue for continued expansion.
- Morgan's top ideas to buy on the pullback: AGN, AMZN, AAPL, AVGO, BAC, BKU, DAL, GILD, GOOG, GOOGL, HLT, JPM, KR, LEN, LMCK, MGA, MBLY, NWL, QCOM, SABR, CRM, SBAC, SBUX, BX, TMO, VRSK, WWAV, XL.
The WhiteWave Foods Co. is a consumer packaged food and beverage company that manufactures, markets, distributes and sells branded plant-based foods and beverages, coffee creamers and beverages, premium dairy products and organic produce throughout North America and Europe. It operates through... More
Sector: Consumer Goods
Industry: Food - Major Diversified
Country: United States
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