Dean Foods misses by $0.04, beats on revs; reaffirms FY17 EPS in-line (19.10)
- Reports Q1 (Mar) earnings of $0.13 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of $0.17; revenues rose 6.2% year/year to $2 bln vs the $1.96 bln Capital IQ Consensus.
- Co reaffirms guidance for FY17, sees EPS of $1.35-1.55 vs. $1.40 Capital IQ Consensus Estimate
- Total volume across all products was 633 million gallons for the first quarter of 2017, a 1.3% decline compared to total volume of 641 million gallons in the first quarter of 2016
- Based on fluid milk sales data published by the USDA through February, fluid milk volume decreased 3.4% year-over-year quarter to date in the first quarter of 2017 on an unadjusted basis
- However, when adjusting for the extra selling day in 2016 due to Leap Year, the category decline was 1.8%
- On this same basis, Dean Foods' share of U.S. fluid milk volumes increased by 10 basis points year-over-year
- Raw milk costs in the first quarter of 2017 of $17.03 per hundred weight increased roughly 6% from the fourth quarter of 2016 and increased 18% from the first quarter of 2016