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Dean Foods Stock Soars After Beating Fiscal Expectation

Dean Foods Stock Soars After Beating Fiscal Expectation

Tuesday, May 8th, 2018

This week, Dean Foods Company reported its first quarter 2018 results with strong earnings across the board, leading to an increase in its stocks, according to a report by InvestorPlace. Specifically, after beating last year’s earnings per share of 13 cents with a whopping 14 cents, Dean Foods also beat Wall Street’s earnings per share estimate of 10 cents, contributing to its shares climbing.

Ralph Scozzafava, CEO, Dean Foods“Our execution in the first quarter was solid, and I’m pleased with our overall progress,” Ralph Scozzafava, Chief Executive Officer, said. “Our volume and mix were in-line with our expectations, and the traction that we’re getting across our enterprise-wide cost productivity plan is ramping up. We took important initial steps to lower our cost base. The initiatives we executed late last year and in the first quarter of 2018 are clearly working as evidenced by the benefits reading through in our results. We will continue to build upon this momentum to deliver on our target of $150 million in incremental run-rate savings by 2020.”

Image credit: Google Finance

According to a company press release, highlights included:

  • Q1 loss per diluted share was $0.00 and adjusted earnings per diluted share was $0.14, which is on track to deliver full-year expectations
  • Operated income was $15 million for the first quarter of 2018 compared to last year’s $4 million during that same time period
  • Revenue for the first quarter of 2018 came in at $1.98 billion, a decrease from its revenue of $2.00 billion from the previous year. Wall Street’s estimate, however, was $1.85 billion, which Dean Foods beat
  • Volume performance and mix in-line were with expectations
  • Strong execution of SG&A cost reductions as part of the company's enterprise-wide cost productivity plan
  • Reaffirmed full-year 2018 adjusted earnings expectation of $0.55 to $0.80 per diluted share

Dean Foods Product Line

"As we move forward in 2018, we are focused on executing our commercial agenda and cost productivity initiatives that will drive our strategic plan. We have been successful in driving early results in the administrative area against our enterprise-wide productivity plan with more work to be done. We will now begin the next phase by right-sizing our network to better match volume. I'm confident in our ability to execute these actions," concluded Scozzafava.

To read the financial report in its entirety, click here.

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Dean Foods