Dean Foods beats profit expectations on strong sales

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Top U.S. dairy company Dean Foods Co. reported a higher-than-expected quarterly profit and raised its full-year forecast as it benefits from strong sales across all its segments and cost cuts.

Shares of the Dallas-based company rose 8 percent in premarket trade on Wednesday. They had closed at $12.72 on Tuesday on the New York Stock Exchange.

The company now expects full-year adjusted earnings of $1.10 to $1.20 per share, up from its prior outlook 87 to 95 cents per share.

First-quarter net income rose to $37.9 million, or 20 cents per share, from $25.3 million, or 14 cents per share, last year.

On an adjusted basis, Dean Foods earned 31 cents per share.

Revenue rose about 5 percent to $3.21 billion.

Analysts on average had expected earnings of 21 cents per share on revenue of $3.13 billion, according to Thomson Reuters I/B/E/S.



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PeterK    
Idaho  |  May, 10, 2012 at 03:06 PM

milk must be cheap if deans is making money....

Steve    
WI  |  May, 11, 2012 at 06:38 AM

These profits come at the expense of the farmers supplying the milk to them. If they would pay a better price maybe they would not be involved in lawsuits for price fixing, oh I guess the lawsuits are just a cost of doing business to them.

Janet    
Ohio  |  May, 13, 2012 at 07:23 PM

This is hilarious considering we just received a letter from DMS last week stating that (I'm paraphrasing here) they aren't making enough money so they are suspending base and rBST premiums. WTF


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