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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