The 10-second takeaway
For the quarter ended June 30 (Q2), Dean Foods missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.
Margins improved across the board.
Dean Foods notched revenue of $3.13 billion. The 11 analysts polled by S&P Capital IQ hoped for revenue of $3.24 billion on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $3.30 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.36. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS were $0.30 for Q2 compared to -$0.28 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.8%, 280 basis points better than the prior-year quarter. Operating margin was 4.9%, 80 basis points better than the prior-year quarter. Net margin was 1.8%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.29 billion. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $13.06 billion. The average EPS estimate is $1.18.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 435 members out of 485 rating the stock outperform, and 50 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Dean Foods a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dean Foods is hold, with an average price target of $16.65.
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