Dean Foods Q1 Profit Tops View, But Sales Miss; Sees Q2 Profit In Line With View

(RTTNews) - Dairy producer Dean Foods Co. (DF) reported a profit for the first-quarter 2016, compared to a loss in the prior year. Adjusted earnings per share topped analysts' expectations, while quarterly sales missed their estimates.

Chief Executive Officer Gregg Tanner said, "Our Q1 performance marks a strong start to 2016. Solid execution across all functions led to continued improvement in our financial and operational performance from Q4 to Q1. We continue to execute our agenda at high levels across the entire team."

For the second quarter, with expected volume declines in the low single digits, slightly decreasing raw milk costs, and taking normal seasonality into account, the company expects adjusted earnings to be between $0.32 and $0.40 per share. Analysts project second-quarter earnings of $0.35 per share.

Net income for the first-quarter was $39.20 million or $0.43 per share, compared to a loss of $73.74 million or $0.78 per share in the prior year.

Adjusted income for the quarter was $41.84 million, or $0.45 per share, compared to $22.31 million or $0.24 per share in the previous year. Analysts polled by Thomson Reuters expect the company to report earnings of $0.38 per share for the first-quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter dropped to $1.88 billion from $2.05 billion in the prior year. Wall Street expected revenues of $1.89 billion for the quarter.

Total volume across all products was 641 million gallons for the first quarter of 2016, a 3.2% decline compared to total volume of 662 million gallons in the first quarter of 2015. For the second quarter 2016, as compared to the prior year period, the Company expects total volumes to decline in the low single digits.

The Company's Board of Directors approved an increase in its quarterly dividend to $0.09, a 29% increase versus the $0.07 dividend paid since the institution of the Company's dividend in the first quarter 2014.

DF closed Monday trading at $18.21, up $0.14 or 0.77 percent.