Dean Foods Is Slowly Inching Higher From Better Dynamics
Alpha Gen Capital
Alpha Gen Capital
Mon, Jul. 11, 2:12 PM
- A bill requiring food companies to label GMO ingredients was approved by the U.S. Senate by a 63 to 30 vote and now heads to the House of Representatives.
- The negotiated bill requires food companies to label genetically modified food by a phrase, symbol on the package, or a bar code that can be scanned by smartphones.
- The Department of agriculture still has two years to write the precise labeling rules if the House approves the bill.
- The passage of the bill is seen as a positive for the food sector as the alternative of having to adhere to state-by-state rules could create operational chaos for national sellers.
- Food stocks: SENEA, SENEB, THS, OTCPK:NCRA, CPB, MDLZ, GIS, OTCPK:NSRGY, FLO, CAG, DF, SJM,DF, ANFI, JJSF, WWAV, UL, OTCQX:DANOY, OTCPK:PLATF, POST, K, PEP, DMND, PF, HAIN, KO, BETR, KHC, WILC, PPC, PF, LWAY, HRL, TSN, DTEA, SAFM, BRID.
Mon, May 23, 9:39 AM
- Athlos Research forecasts food input costs will rise 1.9% over the next six months which will increase the pressure on companies to use pricing to offset the inflation.
- Strong price gains are expected in the fruits/vegetables, softs/sweetners, and oils categories - while proteins, dairy, and grainscosts are expected to fall back.
- The impact on profit varies across the sector. A negative EBIT impact from cost inflation is forecast for Coca-Cola (NYSE:KO), PepsiCo (NYSE:PEP), Cott (NYSE:COT), Dr. Pepper Snapple (NYSE:DPS), Campbell Soup (NYSE:CPB), Pinnacle Foods (NYSE:PF), and Hormel (NYSE:HRL). Foods cost inflation will have a positive impact on EBIT for Post Holdings (NYSE:POST), Dean Foods (NYSE:DF), Hershey (NYSE:HSY), and Fresh Del Monte Products (NYSE:FDP), according to the Athlos estimate.
Thu, May 19, 10:36 AM
- The SEC formally charged the former chairman of Dean Foods (NYSE:DF) with participating in an insider trading scheme.
- The charging documents stated that Thomas Davis passed on tips to well-known gambler Billy Walters, including advance notice of the WhiteWave Foods (NYSE:WWAV) spinoff.
- The case involves professional golfer Phil Mickelson who allegedly made a profit of $931K from tips received by Walters. 3-time Masters winner Mickelson was not charged, but is listed as a "relief defendant" in the case.
- The allegations against Davis have been reported previously.
Wed, May 11, 5:48 PM
Tue, May 10, 6:10 PM
- Dean Foods (NYSE:DF) closed with a slight loss in today's trade even after easily beating Q1 earnings expectations, issuing solid Q2 guidance and purchasing Friendly's Ice Cream for $155M.
- DF expects Friendly’s to immediately add to earnings and margins; DF is buying only the manufacturing and retail ice cream business, which generated $166M in annual net sales and posts low double-digit growth in both volume and net sales, while P-E firm Sun Capital Partners will continue to own and operate the chain’s 260 U.S. restaurant locations and will license the use of the Friendly’s trademark.
- But Athlos Research's Jonathan Feeney warns that declining demand for milk remains a major problem for DF, and believes the recent addition of competitor capacity by Wal-Mart amid flat retail milk demand is ominous for DF’s capacity reduction plans, especially when prices rise.
Tue, May 10, 7:21 AM
- Dean Foods (NYSE:DF) reports total volume fell 3.2% Y/Y to 641M gallons in Q1.
- The company's share of U.S. fluid milk volumes decreased by 70 bps to 34.6%.
- Gross margin rate improved 360 bps to 26.9%.
- SG&A expense rate grew 170 bps to 22.4%.
- Operating margin rate expanded 190 bps to 4.4%.
- Q2 Guidance: Diluted EPS: $0.32 to $0.40; Total volumes: decline in the low single digits.
Tue, May 10, 6:47 AM
Mon, May 9, 5:30 PM| Mon, May 9, 5:30 PM | 1 Comment
Tue, Mar. 22, 5:41 PM
Tue, Mar. 22, 4:42 PM
- Dean Foods (NYSE:DF) fell 12% in today's trade after a Morgan Stanley report analyzing Wal-Mart’s recently disclosed plan to in-source its milk processing called the move an "unfavorable development" for DF.
- WMT is a prime customer and contributed ~16% of DF’s FY 2015 sales, and Stanley believes WMT's decision will drag down volume levels by a significant margin, as 19% of the total plants (13 of 67) are located in the affected states.
- While the impact of the WMT is admittedly a 2017 dynamic, the firm says it still underscores the challenges DF faces in maintaining current margins, particularly if the company is forced to find further cost levers to offset incremental volume losses.
- Stanley reiterated its Underweight rating and $18 price target for DF shares.
- DF +2.5% AH after saying it does not expect a material impact on its financial results due to WMT's actions.
- Earlier: Sudden swing lower for Dean Foods
Tue, Mar. 22, 12:41 PM
Tue, Mar. 22, 11:15 AM| Tue, Mar. 22, 11:15 AM | 3 Comments
Thu, Mar. 3, 4:55 PM
Tue, Feb. 23, 1:26 PM
- Dean Foods (DF +2.9%) is cutting into yesterday's post-earnings share price fall as some investors see the drop as overdone.
- Investment firms have issued mixed commentary on Dean. Stephens says the company is attractively valued at 5X-6X EBITDA, while Athlos Research warns on "structural declines" in milk demand.
- Previously: Dean Foods beats by $0.02, misses on revenue (Feb. 22)
- Previously: Dean Foods +2.10% post Q4 results (Feb. 22)
Mon, Feb. 22, 8:26 AM
- Dean Foods (NYSE:DF) reports total volume fell 3.6% Y/Y to 658M gallons in Q4.
- Gross margin rate improved 670 bps to 25.2%.
- SG&A expense rate rose 440 bps to 21.8%.
- Operating margin rate grew 220 bps to 3.3%.
- Q1 Guidance: Diluted EPS: $0.32 to $0.42; Total volumes: decline in the low single digits.
- FY2016 Guidance: Capex: ~160M.
- DF +2.10% premarket.
Mon, Feb. 22, 8:04 AM
Dean Foods Co. operates as a food and beverage company that is engaged in processing and distribution of milk and other fluid dairy products in the United States. It manufacture, market and distribute a wide variety of branded and private label dairy case products, including fluid milk, ice... More
Sector: Consumer Goods
Industry: Dairy Products
Country: United States
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