WASHINGTON (dpa-AFX) - Dean Foods Co. (DF) Wednesday issued earnings guidance for the second quarter and lifted its full year 2012 view, both above analysts' expectations. The Texas-based dairy processor reported first-quarter results that topped analysts expectations, reflecting stronger than forecasted growth across all of its operating segments as well as cost control. The shares rose 7 percent in the morning trade.
Operating income at WhiteWave segment increased 31 percent, rose 18 percent at Fresh Dairy Direct and the growth was 13 percent at Morningstar.
Gregg Engles, chairman and CEO of the company said, 'Our financial performance was further bolstered by declining interest expense, resulting in first quarter adjusted diluted earnings per share of $0.31, more than double the previous year and the sixth straight quarter we have delivered adjusted EPS at or above our guidance.'
In the first quarter, net income attributable to the company increased to $37.88 million or $0.20 per share from $25.26 million or $0.14 per share in the previous year.
Excluding items, adjusted earnings surged 121 percent to $0.31 per share from $0.14 per share earned in the prior year's first quarter. On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude special items.
Consolidated adjusted operating income increased 42 percent from the year- ago levels.
Net sales for the quarter grew to $3.21 billion from $3.05 billion a year ago, which also exceeded analysts' estimate of $3.13 billion. WhiteWave-Alpro net sales increased 13 percent, Fresh Dairy Direct net sales were up 4 percent and Morningstar posted a 5 percent increase in net sales over the prior-year first quarter.
Looking ahead to the second quarter, the company expects adjusted earnings per share of $0.28 to $0.33. Analysts expect the company to report earnings of $0.22 per share for the second-quarter.
For the full year 2012, the company now expects adjusted earnings per share to be in the range of $1.10 to $1.20, up from the prior guidance of $0.87 to $0.95 per share. Analysts expect the company to report earnings of $0.95 per share for fiscal 2012.
DF is currently trading at $13.65, up $0.93 or 7.31 percent, on a volume of 340 thousand shares on the NYSE.
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