Dean Foods (DF) is the largest dairy producer in the US. Seems like the cow got out of the barn this quarter as earnings collapses and the CFO is now resigning.
Earnings: Decreased 51% to $24.3 million ($0.13 per share) from $49.7 million ($0.27 per share) YOY.
Revenue: Increased 11% to $3.05 billion.
Actual Versus Wall Street Expectations: DF missed Wall Street expectations for $0.21 a share. (Bloomberg).
- Operating income for the Fresh Dairy Direct-Morningstar business dropped 33%.
- The price of class II butterfat (an ingredient in creamer and ice cream products) rocketed 70%.
Did You Hear That?
Chief Executive Officer Gregg Engles said:
In the near term we expect our Fresh Dairy Direct- Morningstar business to remain challenged as the retail environment continues to be very competitive.
Official Company Earnings Release: Read all the details here.
Commentary: Shares of Dean Foods are down 15%. As you can see, shares have been in a long term downtrend and have now broke through a critical level of price support.
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Disclosure: No position