Why WhiteWave Foods (WWAV) Is Up Today

NEW YORK (TheStreet) -- WhiteWave Foods  (WWAV) was rising 8.33% to $25.75 on Thursday after the organic foods company reported fourth-quarter earnings that edged analysts' expectations.

The company posted earnings per share of 22 cents, which beat the Capital IQ consensus estimate of 20 cents. It also marked a 22% year-over-year increase. Revenue also increased 11.5% year over year to $679 million, which beat the consensus estimate of $663.84 million. 

WhiteWave also issued EPS guidance of 18 to 20 cents, excluding items, which was nearly in line with the consensus estimate of 21 cents. For the full year, the company issued guidance of 90 to 94 cents, which matches the consensus estimate of 90 cents.

"Our fourth quarter and full year 2013 results reflect continued strong organic growth across all our businesses," said Chairman and CEO Gregg Engles in the company's statement. "In addition to creating the infrastructure for an independent company in 2013, we also out-performed our expectations. All of us at WhiteWave are proud of our results to date and expect to build on what we've already accomplished."

Must Read: WhiteWave Foods Reports Strong Fourth Quarter And Full Year 2013 Results

TheStreet Ratings team rates WHITEWAVE FOODS CO (THE) as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate WHITEWAVE FOODS CO (THE) (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 solid stock price performance, revenue growth and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, WWAV's share price has jumped by 40.23%, exceeding the performance of the broader market during that same time frame.
  • WWAV's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 9.0%. 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.
  • When compared to other companies in the Food Products industry and the overall market, WHITEWAVE FOODS CO (THE)'s return on equity is below that of both the industry average and the S&P 500.
  • WHITEWAVE FOODS CO (THE)'s earnings per share declined by 6.7% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($0.72 versus $0.31).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Food Products industry. The net income has decreased by 7.6% when compared to the same quarter one year ago, dropping from $26.29 million to $24.29 million.
  • You can view the full analysis from the report here: WWAV Ratings Report

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