Dean Foods Co. (DF) reported a loss for the second quarter 2018 compared to profit in the prior year. Adjusted earnings per share matched analysts’ expectations, while quarterly revenue topped their expectations. It cut its full-year adjusted profit outlook, citing inflation and private label competition.
In the Tuesday’s Pre-Market trade, DF is currently trading at $8.56, down $0.89 or 9.42 percent.
The company lowered its full-year 2018 adjusted earnings per share outlook to a range of $0.32 – $0.52 from the prior range of $0.55 – $0.80 per share. Analysts expect annual earnings of $0.66 per share.
The company said it remains committed to delivering its target of $150 million in incremental annual run-rate savings through enterprise-wide cost productivity plan. At the beginning of 2018, it set an aggressive plan focused on executing a robust set of commercial and cost productivity initiatives. It is achieving its objectives in many areas; however, the timing of its network optimization plans has shifted and it now expects to see benefits beginning in the fourth quarter.
Chief Executive Officer Ralph Scozzafava said, “.. We’re experiencing significantly higher than expected non-dairy inflation along with continued retailer investment in private label which is impacting our branded product mix. Therefore, we now anticipate full-year adjusted diluted earnings per share in the range of $0.32 to $0.52.”
The company increased its full-year free cash flow guidance to be in the range of $40 million to $60 million and reduced full-year capital expenditure guidance to between $125 million and $150 million. Upon completion of enterprise-wide cost productivity plan in 2019, the company will be a much leaner and more agile organization that can better address the current marketplace.
Net loss for the second-quarter was $40.09 million or $0.44 per share, compared to net income of $17.65 million or $0.19 per share last year.
Adjusted earnings per share from continuing operations were $0.16 compared to $0.21 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share for the second-quarter. Analysts’ estimates typically exclude special items.
Net sales for the quarter grew to $1.95 billion from $1.93 billion in the previous year. Wall Street analysts had a consensus revenue estimate of $1.91 billion.
by RTTNews Staff Writer
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