Post-Earnings Insight - Dean Foods Co.

LONDON, August 20, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings report and analysis on Dean Foods Company (NYSE: DF).  The company featured in the headlines on Monday, August 11, 2014, after its Q2 2014 GAAP gross profit fell 16% year-over-year and GAAP net loss attributable to Dean Foods Co. narrowed 99% year-over-year in the reported period. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview  

During the second quarter of 2014, Dean Foods Co. reported GAAP gross profit of $399.09 million, as compared to $472.30 million in Q2 2013. The company's GAAP operating loss stood at $3.53 million in Q2 2014, compared to GAAP operating income of $43.58 million in the year ago period. Furthermore, the second quarter 2014 adjusted operating loss came in at $5.89 million, compared to adjusted operating income of $64.68 million in the year-ago period. In the reported quarter, the company reduced its GAAP interest expense by 84% year-over-year to $15.22 million from $90.12 million. As a part of its cost reduction measure announced in first quarter of 2013, to close eight to twelve (10-15%) of its manufacturing facilities by mid-2014, the company has shut down twelve of its manufacturing units, of which four units were closed in the month of June and July 2014. The free research on DF can be downloaded as in PDF format at:

http://www.Investor-Edge.com/DFFreeReport

For the quarter ended June 30, 2014, Dean Foods Co.' market share in US fluid milk sales volume increased to 35.9% from 35.7% in the preceding quarter. However, the company's unadjusted fluid milk volumes in Q2 2014 declined 4% on a year-over-year basis, reflecting the negative impact of the RFP-driven volume loss from a significant customer in 2013. Excluding the impact of the RFP and another customer's decision to vertically integrate last year, the company's fluid milk volumes in the quarter decreased 0.3% year-over-year, which was significantly better than the overall category's volume decline. The company announced the withdrawal of its full year 2014 guidance amidst uncertain environment; however for the third quarter of 2014 it expects loss from continuing operations attributable to Dean Foods Co. to be in the range of $0.05-0.15 per share.

Gregg Tanner, Chief Executive Officer of Dean Foods Co., said in the recent press release that the second quarter 2014 was more challenging than its original anticipation and recognized it as most difficult operating environment in the history of the company, stressing on the importance of the recent initiatives. Meanwhile, Chris Bellairs, Chief Financial Officer of Dean Foods Co., stated that during the quarter the company encountered unprecedented challenges, including softening category volumes, mix shift out of its brands and significant cost friction, due to the extreme dairy commodity environment.

The Dallas, Texas-based processor and distributor of fluid milk reported GAAP net sales of $2,393.87 million in Q2 2014, as compared to $2,227.54 million in the prior year period and Bloomberg analysts' revenue estimate of $2326.0 million. Meanwhile, the company's GAAP net loss attributable to Dean Foods Co. for the reported period stood at $0.65 million, or $0.01 loss per diluted share, compared with GAAP net loss attributable to Dean Foods Co. of $56.87 million, or $0.61 loss per diluted share in Q2 2013. Bloomberg analysts' Q2 2014 GAAP net loss expectation stood at $10.08 million, or $0.14 loss per diluted share. Sign up and read the free analyst's notes on DF at:

http://www.Investor-Edge.com/DF-20082014

Stock Performance    

On the day of the earnings release, Monday, August 11, 2014, Dean Food Co.'s shares declined 3.86% to end the session at $15.20. However, on the last close, Tuesday, August 19, 2014, the stock edged 0.18% higher to end at $16.35. The stock vacillated between $16.17 and $16.40 during the session. A total of 1.74 million shares were traded, which was below its three months average volume of 3.00 million shares. Over the previous three trading sessions and over the last three months, the company's shares have advanced 3.35% and 5.01%, respectively. However, from the beginning of 2014, the stock has fallen by 4.89%. Dean Food Co.'s shares are trading below their 50-day and 200-day moving averages of $16.85 and $16.48, respectively. Furthermore, the stock traded at a PE ratio 11.41 and has a Relative Strength Index (RSI) of 52.69. Visit Investor-Edge and access the latest research on DF at:

http://www.Investor-Edge.com/DFEarningsCoverage

Sneak Peek to Corporate Insider Trading  

In the last one month, Dean Food Co. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on DF is available at:

http://www.Investor-Edge.com/DFInsiderTrading

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