Estimates have been rising for Mead Johnson Nutrition Company (MJN) after the company delivered its 6th consecutive positive earnings surprise. It is a Zacks #2 Rank (Buy) stock.

Based on consensus estimates, analysts project strong double-digit earnings growth over the next couple years as the company continues to grow in the emerging markets.

On top of this growth, it pays a dividend that yields a solid 1.5%.

Company Description

Mead Johnson manufactures and distributes pediatric nutrition products primarily under its 'Enfa' family of brands. The Enfa brand, including Enfamil infant formula, is a global brand franchise in pediatric nutrition.

The company was founded in 1905 and is headquartered in Glenview, Illinois. It was spun-off from Bristol-Meyers Squibb (BMY) in 2009.

First Quarter Results

Mead Johnson Nutrition delivered strong first quarter results on April 26. Adjusted earnings per share came in at 82 cents, beating the Zacks Consensus Estimate of 78 cents. It was an 8% increase over the same quarter last year.

Net sales rose 9% to $986.6 million, ahead of the consensus of $980.0 million. This was driven by a 5% increase in volume and a 4% increase in prices. Growth was particularly strong in the Asia/Latin America segment, which offset weakness in the North America/Europe segment.

The gross margin did decline 230 basis points year-over-year. But operating income was up 12% over the same period to $222.6 million.

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Mead Johnson Nutrition Company (MJN): Zacks Rank Buy