Dean Foods Slips To Loss In Q1; Cuts FY Adj. EPS View - Quick Facts

(RTTNews) - Dean Foods Co. (DF) said it has incurred $9 million, or $0.09 per share of GAAP net loss attributable to the company in the first quarter 2014, as against a profit of $493 million, or $5.30 per share, last year. On an adjusted basis, net loss attributable to the company was $5 million, or $0.05 per share for the latest period. On average, 11 analysts polled by Thomson Reuters expected earnings per share of $0.01 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the first quarter of 2014 were $2.3 billion, same as the prior-year quarter. Nine analysts estimated revenues of $2.27 billion for the first quarter.

"Turning to the forward outlook, we expect the second quarter to be particularly difficult given historically high raw milk costs, continued overlaps of the RFP driven volume loss, and category declines that may be worse than recent run rates," said Gregg Tanner, Chief Executive Officer of Dean Foods. He added, "However, as we lap the most difficult challenges and our cost reduction efforts continue to take hold, we expect results to strengthen in the back half and exceed 2013 performance in the third and fourth quarters."

Looking ahead to the second quarter, the firm sees adjusted loss per share of $0.02 to $0.08. Analysts anticipate second-quarter earnings of $0.13 per share.

Further, Dean Foods is lowering its annual adjusted earnings per share guidance to at least $0.60. This full-year guidance is predicated on a moderation of Class I prices beginning in June with an end of the year assumption of $20.00 - $21.00 per hundred-weight. Previously, the company has estimated 2014 adjusted earnings to be $0.73 - $0.86 per share. Analysts project earnings per share of $0.76 for 2014.