Categories Earnings, Retail

Dean Foods stock dips on weak Q3 earnings, guidance cut

Dean Foods (DF) reported a wider loss from continuing operations for the third quarter as the dairy, food and beverages company closed and consolidated seven plants, and incurred higher than expected transitory costs. The company’s stock plunged over 24% in the afternoon trade after the bottom line missing consensus estimates and full-year guidance cut.

Loss from continuing operations was $26.65 million or $0.29 per share wider than last year’s loss of $9.97 million or $0.11 per share. On an adjusted basis, loss per share was $0.28 compared to EPS of $0.20 a year ago. Net sales declined 2.2% year-over-year to $1.89 billion.

The results for the quarter included the first full quarter of anticipated volume exiting its system amplified by incremental short-term costs associated with plant consolidations. The company incurred significant transitory costs related to ramping up receiving plant locations while also experiencing deleverage as volume exited the closing facilities.

United Natural Foods stock drops on weak Q4 results

Dean Foods said the residual transitory costs associated with its plant consolidation efforts, retailers continued investment in private label and higher than expected transportation-related inflation prompted the company to lower its guidance.

For the full year 2018, the company lowered its adjusted EPS guidance to the range of $0.10 to $0.30 from the previous estimate range of $0.32 to $0.52. Capital expenditure outlook was cut to the range of $100 million to $120 million from the prior range of $125 million to $150 million. Cash flow forecast was reduced to the range of $30 million to $50 million from the previous range of $40 million to $60 million.

Total outstanding debt at September 30, 2018, net of $22 million cash on hand, was about $870 million. The company’s net debt to bank EBITDA total leverage ratio, on an all-cash netted basis, was 3.60 times at the end of the third quarter of 2018.

Shares of Dean Foods opened Wednesday’s regular session lower and remained in grounded throughout the day. The stock has fallen over 37% in the past year and over 50% in the year so far.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top