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Dean Foods lowered its Q2 and FY 2007 guidance due to anticipated record high dairy prices and an oversupply of organic dairy products. Shares of Dean Foods are currently untraded in Tuesday's pre-market, after gaining 0.3% to $32.46 in normal trading Monday. Dean-Foods-DF-chart-06-11-07 Dean Foods now expects Q2 EPS of $0.30 - $0.31, compared to the $0.37 - $0.38 it expected previously. Analysts had estimated $0.37/share on average. Full year EPS is seen between $1.52 - $1.58 (vs. $1.72 - $1.78 previously), compared to analysts' $1.69/share average estimate. In a press release, Gregg Engles, Dean Foods Chairman and CEO said, "We are faced with an unusually broad set of challenges across the portfolio." Q3 is expected to be "particularly challenging." An update will be provided in August during the company's Q2 earnings conference call. In a positive note, Engles said he expects profits to accelerate in 2008, based on a multi-year cost-cutting and restructuring program, in addition to moderating short-term challenges.

Sources: Press release, MarketWatch
Commentary: Dean Foods: Milk This Oversell - Barron's4 Dairy Stocks To WatchDean Foods: Special Dividends Not a Good Signal
Stocks/ETFs to watch: Dean Foods Co. (NYSE:DF). Competitors: ConAgra Foods, Inc. (NYSE:CAG), Kraft Foods Inc. (KFT)

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