The 10-second takeaway
For the quarter ended Dec. 31 (Q4), 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 increased.
Gross margins were steady, operating margins grew, net margins increased.
Dean Foods chalked up revenue of $3.04 billion. The 12 analysts polled by S&P Capital IQ predicted revenue of $3.37 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.40. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.29 per share. GAAP EPS were $0.40 for Q4 against -$0.06 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 23.3%, about the same as the prior-year quarter. Operating margin was 4.6%, 50 basis points better than the prior-year quarter. Net margin was 2.2%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.17 billion. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $12.65 billion. The average EPS estimate is $1.25.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 450 members out of 499 rating the stock outperform, and 49 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 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 outperform, with an average price target of $20.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Dean Foods Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.