Dean Foods Company (DF) reported a higher-than-expected net loss for the fourth quarter of 2018 but revenues came in ahead of expectations. Shares rose 1.3% in premarket hours on Wednesday.
Net sales totaled $1.93 billion, relatively flat compared to the prior-year period.
Net loss attributable to Dean Foods Company was $260.1 million, or $2.85 per share. This compares to a net income of $52.3 million, or $0.57 per share, in the year-ago period. Adjusted EPS from continuing operations was $0.50.
Dean Foods said it has started a review of strategic alternatives to increase shareholder value. The alternatives might include, among others, the disposition of certain assets, the formation of a joint venture, a strategic partnership or even a sale of the company. As the company reviews these alternatives, it has decided to suspend financial guidance.
Dean Foods stock dips on weak Q3 earnings, guidance cut
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Dean Foods stated that it has successfully refinanced credit facilities and also decided to suspend its quarterly dividend to enhance financial flexibility.
Capital expenditures totaled $47 million in the fourth quarter. Total outstanding debt at December 31, 2018 was approx. $887 million.
Dean Foods’ rival Campbell Soup Company (CPB) reported second-quarter 2019 results on Wednesday, with both revenue and earnings topping estimates.