While Dean Foods’ sales of whole milk were up 5% in the second quarter and skim milk sales were down 11%, the company reported Monday that it had to cut prices on its private label milk and ice cream products because no one was buying them.
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Management expects third-quarter 2016 adjusted earnings to range from 32-40 cents a share, while GAAP earnings is expected to be in the range of 28-36 cents.
Dean Foods Co opened for trading at $18.42 and hit $19.045 on the upside on Friday, eventually ending the session at $18.82, with a gain of 2.34% or 0.43 points. Zacks Investment Research downgraded shares of Dean Foods from a “buy” rating to a “hold” rating in a research report on Tuesday, April 12th. BMO Capital Markets restated a “hold” rating and issued a $21.00 price objective on shares of Dean Foods in a research report on Monday, May 23rd. The company has a market capitalization of $1.73 billion and a price-to-earnings ratio of 16.73. The shares were sold at an average price of $19.66, for a total transaction of $77,145.84. The business had revenue of $1.85 billion for the quarter, compared to the consensus estimate of $1.84 billion.
Shares of the company tumbled 4.3% premarket to $18.01. Mailloux J Wayne retains 105,230 shares in the company after this transaction. The sale was disclosed in a legal filing with the SEC, which is available through this link. Dean Foods’ operating income stood at $72.8m, versus $56.7m a year ago.
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Dean Foods Company is a food and beverage company. If we look at Dean Food’s performance in the trailing four quarters (including the quarter under review), the company has outperformed the Zacks Consensus Estimate in all four quarters, resulting in an average surprise of 10.4%. The Company processes and distributes fluid milk and other dairy case products in the United States.
