×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Dean Foods Gains After Raising Full-Year Earnings Forecast

Dean Foods Gains After Raising Full-Year Earnings Forecast

Tuesday, 10 May 2011 10:19 AM EDT

Dean Foods Co., the largest U.S. milk processor, gained the most in more than two years in New York trading after raising its full-year earnings forecast and posting first-quarter profit that exceeded analysts’ estimates.

Full-year earnings will be 67 to 75 cents, up from a previous prediction of 55 to 65 cents, the Dallas-based company said today in a statement. First-quarter net income fell 41 percent to $25.3 million, or 14 cents a share, from $43.2 million, or 24 cents a year earlier. That beat the 6-cent average estimate of 15 analysts in a Bloomberg survey. Sales increased 3 percent to $3.05 billion from $2.96 billion.

Dean’s Fresh Dairy Direct-Morningstar dairy business’s earnings have declined after commodity costs rose, retailers pressed for price concessions and consumers bought cheaper store brands. Dean said today it’s cutting costs and pursuing new business to offset the “soft” volumes in the milk unit.

“Overall, the business is off to a stronger start than we had anticipated and we are somewhat encouraged as we look to the balance of the year,” Dean Chairman and Chief Executive Officer Gregg Engles said in the statement. “While we have a long way to go at Fresh Dairy Direct-Morningstar, I am cautiously optimistic that the trajectory of our business is upward.”

Dean climbed $1.36, or 12 percent, to $12.34 as of 9:48 a.m. in New York Stock Exchange composite trading. The shares earlier gained as much as 15 percent, the biggest intraday gain since Nov. 24, 2008.

Second-quarter earnings will be 15 to 20 cents a share, the company also said.


© Copyright 2024 Bloomberg News. All rights reserved.


InvestingAnalysis
Dean Foods Co., the largest U.S. milk processor, gained the most in more than two years in New York trading after raising its full-year earnings forecast and posting first-quarter profit that exceeded analysts estimates. Full-year earnings will be 67 to 75 cents, up from...
Dean Foods Gains After Raising Full-Year Earnings Forecast
262
2011-19-10
Tuesday, 10 May 2011 10:19 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved