Ahead Of Dean Foods Q4 Results

(RTTNews) - Dairy producer Dean Foods Co. (DF) expects global dairy fundamentals to continue to be overall supportive to its business as production continues to outpace relatively modest demand. Also, the company expects to continue its brand and commercial momentum through extensions into the lactose-free category and nutrient-enriched products.

The company anticipates generating sustainable growth from its brands through consumer insights, innovation, line extensions, and expansion into adjacencies that leverage its existing network and capabilities.

With the continuation of commercial and brand initiatives, diligent cost focus, seasonal demand driving beneficial product mix, and an overall favorable commodity environment, which is supportive, the company expects to report a strong fourth quarter results.

Dean Foods' fourth-quarter results are due to be released before the bell on Monday, February 22, with analysts polled by Thomson Reuters estimating earnings of $0.34 per share on revenue of $2.07 billion. Analysts' estimate typically exclude certain special items.

The company sees fourth-quarter adjusted earnings in a range of $0.28 - $0.38 per share. Average Class 1 mover, a measure of raw milk is expected to decline 31% to around $16.22 and total volume to decline in the low single digits.

For the full year 2015, the company projects adjusted full earnings per share in a range of $1.15 - $1.25, while analysts expect $1.22 per share on revenue of $8.17 billion.

Q3 Overview

For the third quarter net profit for the quarter was $20.233 million compared to a net loss of $15.972 million in the prior year. On a per share basis, the company posted a net profit of $0.22 compared to a loss of $0.16 a year ago. On an adjusted basis, Dean Foods reported a profit of $28.417 million or $0.30 per share.

On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.24 per share. Analysts estimates usually exclude special items.

Net sales for the quarter declined to $2.033 billion from $2.373 billion last year. Wall Street was looking of $2.04 billion.