Dean Foods Beats Q1 Earnings, Revenue Estimates, Targets $150M In Savings By 2020

Dean Foods DF shares were soaring nearly 14 percent Tuesday after the food and beverage giant reported a first-quarter earnings-and-sales beat. 

What Happened

Dean Foods reported earnings per share of 14 cents in Q1 against a consensus expectation of 11 cents. The company's $1.98 billion in revenue in the quarter beat a $1.85-billion estimate. 

CEO Ralph Scozzafava said in a statement that he's pleased with Dean Foods' execution and overall progress in Q1. The company's volume and mix were in line with its expectations, he said. 

Why It's Important

"We took important steps to lower our cost base," Scozzafava said in the statement. "The initiatives we executed late last year and in the first quarter of 2018 are clearly working, as evidenced by the benefits reading through in our results." 

Dean Foods is targeting $150 million in incremental run-rate savings by 2020, the CEO said. 

Raw milk costs of $14.35 per hundred-weight were down 13 percent from the fourth quarter of 2017. 

Free cash flow from continuing operations was $22 million in the quarter, up $3 million from the same period last year. Capital expenditures reached $17 million.

What's Next

Scozzafava reaffirmed full-year 2018 adjusted diluted earnings guidance of 55-80 cents per share. 

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