Dean Foods misses by $0.08, beats on revs; guides Q3 EPS below consensus; withdraws full year guidance
Reports Q2 (Jun) loss of $0.14 per share, $0.08 worse than the Capital IQ Consensus Estimate of ($0.06); revenues rose 7.4% year/year to $2.39 bln vs the $2.32 bln consensus.
- Co issues downside guidance for Q3, sees EPS of ($0.15) - ($0.05) vs. $0.26 Capital IQ Consensus Estimate.
- Dean Foods' share of U.S. fluid milk sales volume increased to 35.9% during the second quarter from 35.7% in the first quarter of 2014. The Company continues to make solid progress against its accelerated cost reduction agenda. Since announcing in the first quarter of 2013 its intention to close eight to twelve (10-15%) of its manufacturing facilities by mid-2014 the Company has closed twelve plants. Four of the twelve closures occurred in June and July of this year. As we move beyond our accelerated cost reduction agenda, we expect to return to our normal optimization activities.
- Guidance: "The balance of the year appears rocky, with a continued unpredictable and volatile dairy commodity environment. That makes it difficult to provide guidance beyond the immediate quarter...Therefore for the time being, we are going to provide specific guidance only for the next quarter, where our visibility is better. In this case, we expect an adjusted diluted net loss of between $0.05 and $0.15 per share in the third quarter. While we hope to see a more positive environment later in the year, the uncertainty surrounding whether or when that will occur leads us to withdraw our full year guidance for the present time....We also expect to be at the low end of our prior 2014 capital expenditure guidance of $150-175 million."