Dean Foods Earnings: Revenue Tops Expectations, Stock RALLIES

S&P 500 (NYSE:SPY) component Dean Foods Company (NYSE:DF) reported its results for the second 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

Results: Reported a profit of $56.2 million (30 cents per diluted share) in the quarter. Dean Foods Company had a net loss of $50.5 million or a loss 28 cents per share in the year-earlier quarter.

Revenue: Fell 5.3% to $3.13 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dean Foods Company fell short of the mean analyst estimate of 31 cents per share. Analysts were expecting revenue of $3.11 billion.

Quoting Management: “We continued to build on our momentum in the second quarter, delivering strong growth across all of our operating segments,” said Gregg Engles, Chairman and CEO. “In addition to each of our businesses executing well against their stated plans, we also continued to benefit from disciplined expense control across the organization.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 11.7%.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by 10 cents, and in the fourth quarter of the last fiscal year, it was ahead by 4 cents.

Cost of sales dropped to $2.32 billion, down 8.6% from the year-earlier quarter. Last quarter, cost of sales was 74.2% of revenue versus 77% a year earlier.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to 26 cents per share from 23 cents. Over the past three months, the average estimate for the fiscal year has climbed from 93 cents per to share to $1.19.

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

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