NEW YORK (TheStreet) -- WhiteWave Foods
(WWAV - Get Report) shares are up 11% to $29.54 on Thursday following the release of the company's first quarter earnings report.
The company reported adjusted net earnings of 22 cents per share, beating analysts estimates by 2 cents.
The packaged food and beverage company reported revenue of $830 million during the quarter, a 36% increase over the same period last year.
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TheStreet Ratings team rates WHITEWAVE FOODS CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate WHITEWAVE FOODS CO (WWAV) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WWAV's revenue growth has slightly outpaced the industry average of 2.3%. Since the same quarter one year prior, revenues rose by 11.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that WWAV's debt-to-equity ratio is low, the quick ratio, which is currently 0.64, displays a potential problem in covering short-term cash needs.
- Net operating cash flow has decreased to $69.62 million or 20.91% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Food Products industry. The net income has significantly decreased by 34.2% when compared to the same quarter one year ago, falling from $29.71 million to $19.54 million.
- You can view the full analysis from the report here: WWAV Ratings Report