Dean Foods Q3 Earnings Beat Views, Shares Surge

Shares of

jumped more than 8 percent in pre-market trading after the company reported better-than-expected earnings for the third quarter and issued a strong forecast. The Dallas, Texas-based company posted quarterly net income of $20.2 million, or $0.22 per share, versus a year-ago loss of $16 million, or $0.17 per share. Its adjusted earnings came in at $0.30 per share in the quarter. Its sales slipped to $2.03 billion from $2.37 billion. However, analysts were expecting a profit of $0.24 per share on revenue of $2.05 billion. The average estimate among 16 Estimize users was for earnings of $0.26 per share and revenue of $2.06 billion. Total volume shrank 2 percent for the quarter. Chief Executive Officer Gregg Tanner said, "I'm very pleased with our third quarter results that demonstrate we are driving the right initiatives and agenda. We view our portfolio of brands, especially with our national brands of DairyPure in fresh white milk and TruMoo in flavored milk, as a competitive advantage that complements our customer set and leverages the national scale of our network and one of the nation's largest best-in-class refrigerated direct store delivery distribution systems." "Turning to the forward outlook for the fourth quarter, with the continuation of commercial and brand initiatives, diligent cost focus, seasonal demand driving beneficial product mix, and an overall favorable commodity environment which is supportive, we expect to close out this year with strong fourth quarter results," added Tanner. The company expects Q4 adjusted earnings of $0.28 to $0.38 per share, versus analysts' estimates of $0.24 per share. Dean Foods projects FY15 adjusted earnings of $1.15 to $1.25 per share, versus analysts' expectations of $1.05 per share. Dean Foods shares jumped 8.14 percent to $19.40 in pre-market trading.