Zacks’ analyst wrote, “Despite continuous pressure from rise in raw milk prices, Dean Foods’ earnings of $0.12 per share for third-quarter 2013 came much higher than its own guidance range of $0.05-$0.08. The upside was primarily driven by effective cost management. However, quarterly earnings were below the Zacks Consensus Estimate of $0.13 per share and the year-ago quarter earnings of $0.14. We believe that the sale of the Morningstar business and spin-off of The WhiteWave Company has unleashed significant shareholder value, while improving the company’s focus on its core business that will likely bolster future growth. However, anticipating an adverse impact on margins due to fluctuating raw milk prices, we prefer to be on the sidelines. Raw milk prices are projected to rise in the coming quarters. Therefore, we maintain our long-term Neutral recommendation on the stock.”
Several other analysts have also recently commented on the stock. Analysts at Stifel Nicolaus cut their price target on shares of Dean Foods from $24.00 to $22.00 in a research note to investors on Wednesday, November 13th. They now have a buy rating on the stock. Separately, analysts at BMO Capital Markets reiterated a buy rating on shares of Dean Foods in a research note to investors on Wednesday, November 13th. They now have a $23.00 price target on the stock. Finally, analysts at Deutsche Bank cut their price target on shares of Dean Foods from $25.00 to $23.00 in a research note to investors on Wednesday, November 13th. They now have a buy rating on the stock. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and nine have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and a consensus price target of $19.73.
Dean Foods (NYSE:DF) opened at 18.11 on Thursday. Dean Foods has a 1-year low of $13.5179 and a 1-year high of $22.96. The stock’s 50-day moving average is $18.67 and its 200-day moving average is $19.59. The company has a market cap of $1.705 billion and a price-to-earnings ratio of 1.92.
Dean Foods (NYSE:DF) last issued its quarterly earnings data on Tuesday, November 12th. The company reported $0.12 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.14 by $0.02. The company had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.20 billion. During the same quarter in the previous year, the company posted $0.33 earnings per share. The company’s revenue for the quarter was down 2.0% on a year-over-year basis. On average, analysts predict that Dean Foods will post $0.89 earnings per share for the current fiscal year.
Dean Foods Company is a food and beverage company. The Company operates through two segments: Fresh Dairy Direct and The WhiteWave Foods Company (NYSE:DF).
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