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WhiteWave Foods Shares Reiterated At Buy Ahead Of Q1 Print

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Whitewave Foods NYSE:WWAV - WhiteWave Foods Shares Reiterated At Buy Ahead Of Q1 Print

D.A. Davidson’s Eric M. Gottlieb expects WhiteWave Foods Co WWAV 0.02% to report robust results when the company announces its 1Q16 figures on May 10.

Gottlieb reiterated a Buy rating on the company, with a price target of $50.

‘Silky Smooth’ Quarter

The analyst expects 1Q16 to have been a “silky smooth” quarter for the company, with EPS likely to be in-line with the consensus and guidance.

“Results are expected to be driven by continued strong momentum at plant-based foods and beverages and premium dairy,” Gottlieb mentioned, while adding, “Innovation and acquisitions should produce diverse and growing revenue streams, while the company’s brand equity should allow for further strengthen in key categories.”

1Q Expectations

Revenue for the quarter is expected at $1.02 billion, representing 11.6 percent year-on-year growth. Management had guided to 11–12 percent growth.

Gottlieb believes that about 4.4 percent of the growth would have been driven by three acquisitions, with 7.2 percent organic growth.

Operating income is also expected to be in line with the guidance, rising 11.4 percent from the year ago levels. “Much of the gains are in Americas Foods & Beverages and Europe Foods and Beverages,” Gottlieb explained.

According to the D.A. Davidson report, “WhiteWave has excelled at innovation, adding new line extensions to expand brand name and brand equity to other parts of the store.”

DateFirmActionFromTo
Apr 2016Atlantic EquitiesInitiates Coverage onOverweight
Apr 2016CLSADowngradesBuyOutperform
Mar 2016Tigress FinancialDowngradesStrong BuyBuy

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