Dean Foods (DF) Shares Plunge 16%

Shares of Dean Foods Co. (NYSE: DF) plunged as much as 16% after the company forecast 1st quarter and 2010 earnings below consensus analyst estimates.

A Bloomberg survey of analysts showed an average estimate for 1st quarter profits of 41 cents per share. However, Dean Foods said that profits will most likely come in at 25 to 30 cents per share due to “sharply rising dairy commodity prices.”

Dean Foods' forecast of full year earnings ranged from $1.54 to $1.64, while the average estimate of analysts in the survey was $1.70.

Analyst Farha Aslam of Stephens Inc. downgraded her rating of Dean Foods from Overweight to Equal-weight.

“The shares will likely now be hampered by concerns about escalating dairy commodity prices for the next several months,” Aslam said in a note to clients. “The opportunity in the stock is less compelling.”