WhiteWave Foods Company (WWAV) Volume Drives Growth PT Up to $50 - Wedbush

Wedbush analyst, Phil Terpolilli, raised his price target on The WhiteWave Foods Company (NYSE: WWAV) after a clean beat and raise quarter. No change to Outperform rating.

WWAV reported 1Q adjusted EPS of $0.28 ex-items (vs. $0.26 consensus). Revenues were up ~14% y/y to $1.04B (and up ~15% ex-currency) and included strong organic growth across all brands ex-Earthbound. The revenue beat is mainly attributed to an increase in volume, a small benefit from pricing as well as strength in acquired businesses. WWAV expanded consolidated EBIT margin ~50 bps y/y to 8.7%, benefitting from improving cost leverage and supply chain efficiencies.

WWAV raised FY16 EPS guidance from $1.33-1.37 to $1.38-1.41. Management now expects 10.5-11.5% y/y net sales growth (previously 10-11%). Adjusted operating income is expected to increase throughout FY16 (75+ bps total y/y expansion) as sales of Earthbound Farms slowly rebound in 2H16 and the company completes capacity expansion efforts.

PT increases to $50, ~30x revised FY17 EPS of $1.63 (up $0.02).

For an analyst ratings summary and ratings history on The WhiteWave Foods Company click here. For more ratings news on The WhiteWave Foods Company click here.

Shares of The WhiteWave Foods Company closed at $44.57 yesterday.

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