Dean Foods Earnings: Beats the Street on Profit Rise

S&P 500 (NYSE:SPY) component Dean Foods Company (NYSE:DF) reported net income above Wall Street’s expectations for the first quarter. Dean Foods is a food and beverage company in the United States offering dairy and frozen food products.

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Dean Foods Company Earnings Cheat Sheet for the First Quarter

Results: Net income for Dean Foods Company rose to $37.9 million (20 cents per share) vs. $25.3 million (14 cents per share) in the same quarter a year earlier. This marks a rise of 50% from the year-earlier quarter.

Revenue: Rose 5.4% to $3.21 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dean Foods Company reported adjusted net income of 31 cents per share. By that measure, the company beat the mean estimate of 21 cents per share. It beat the average revenue estimate of $3.11 billion.

Quoting Management: “Today we announced strong first quarter results, driven by stronger than forecasted growth across each of our three operating segments, and supported by tight expense control across the business,” said Gregg Engles, Chairman and CEO. “As a result, consolidated adjusted operating income increased 42% above year ago levels. “Our financial performance was further bolstered by declining interest expense, resulting in first quarter adjusted diluted earnings per share of $0.31, more than double the previous year and the sixth straight quarter we have delivered adjusted EPS at or above our guidance.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the fourth quarter of the last fiscal year, by 3 cents in the third quarter of the last fiscal year, and by one cent in the second quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 4.5% to $3.3 billion in the fourth quarter of the last fiscal year. The figure rose 11.7% in the third quarter of the last fiscal year from the year earlier and climbed 11.6% in the second quarter of the last fiscal year from the year-ago quarter.

DF’s profit in the latest quarter interrupts a three-quarter streak of losses. The company reported a net loss of $9.9 million in the fourth quarter of the last fiscal year, a loss of $1.54 billion in the third quarter of the last fiscal year and a loss of $50.5 million in the second of the last fiscal year.

The company’s cost of sales rose 5.5% from a year earlier. Last quarter, cost of sales was 75.5% of revenue, similar to the prior-year quarter.

Looking Forward: The average estimate for the second quarter is steady at 22 cents a share. The average estimate for the fiscal year is 93 cents per share, a rise from 90 cents ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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