Dean Foods Co. Earnings: Here’s Why Shares are Down Now

Dean Foods Co. (NYSE:DF) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5%.

Dean Foods Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 39.39% to $0.20 in the quarter versus EPS of $0.27 in the year-earlier quarter.

Revenue: Rose 3.67% to $3.42 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dean Foods Co. reported adjusted EPS income of $0.20 per share. By that measure, the company missed the mean analyst estimate of $0.30. It beat the average revenue estimate of $3.37 billion.

Quoting Management: “The fourth quarter marked the successful conclusion of a very strong year,” said Gregg Tanner, Chief Executive Officer of Dean Foods. “At Fresh Dairy Direct, our employees are to be commended for the results they delivered through continued focus on the fundamentals of the business, including volume performance, cost control and effective pricing. In particular, the strong pricing discipline demonstrated by our FDD field organization in the face of a highly inflationary commodity environment resulted in significant outperformance compared to our expectations.”

Key Stats (on next page)…

Revenue increased 8.71% from $3.14 billion in the previous quarter. EPS decreased 39.39% from $0.33 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.30 and has not changed. For the current year, the average estimate has moved up from a profit of $1.25 to a profit of $1.29 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)