We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dean Foods (DF) to Post Q4 Earnings: Is a Beat on the Cards?
Read MoreHide Full Article
We expect Dean Foods Company to beat expectations when it reports fourth-quarter 2016 results on Feb 16.
Last quarter, the company had delivered earnings in line with the Zacks Consensus Estimate. Further, the company has outperformed the Zacks Consensus Estimate in two of the trailing four quarters, with an average beat of 5.4%. Let’s see how things are shaping up for this announcement.
Our proven model shows that Dean Foods is likely to beat earnings because it has the right combination of the two key components.
Zacks ESP: Dean Foods currently has an Earnings ESP of +2.44%. This is because the Most Accurate estimate stands at 42 cents, while the Zacks Consensus Estimate is pegged lower at 41 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Dean Foods carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings. Conversely, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
The combination of Dean Foods’ Zacks Rank #3 and positive ESP make us reasonably confident of a positive earnings beat.
What's Driving the Better-than-Expected Earnings?
Dean Foods appears promising, driven by its robust brand portfolio, ongoing strategic initiatives and focus on improving core business activities. The company’s strong portfolio of brands provides a competitive advantage, alongside fortifying its customer base. Moreover, the company is well positioned in the industry as it is one of the low-cost producers. Additionally, it is striving to extend this advantage through cost-reduction activities across its business.
Further, management remains committed toward taking strategic steps to optimize capital allocation and concentrate on core business activities. The company’s strategic measures are primarily focused on three controllable factors – price realization, cost productivity and volumes at margins – which will aid in delivering appropriate returns.
Shares of Dean Foods have yielded a return of nearly 9.1% in the past six months, outperforming the Zacks categorized Consumer Staples sector’s fall of 4.9% in the same time frame.
Taking cue from this strength, and by focusing on cost management and constant brand building initiatives, the company remains on track to consolidate its position in the dairy industry and boost shareholder value.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
The Gap Inc. (GPS - Free Report) , scheduled to report earnings on Feb 23, currently has an Earnings ESP of +2.22% and a Zacks Rank #3.
Costco Wholesale Corp. (COST - Free Report) , slated to report earnings on Mar 2, currently has an Earnings ESP of +0.74% and a Zacks Rank #3.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Dean Foods (DF) to Post Q4 Earnings: Is a Beat on the Cards?
We expect Dean Foods Company to beat expectations when it reports fourth-quarter 2016 results on Feb 16.
Last quarter, the company had delivered earnings in line with the Zacks Consensus Estimate. Further, the company has outperformed the Zacks Consensus Estimate in two of the trailing four quarters, with an average beat of 5.4%. Let’s see how things are shaping up for this announcement.
Dean Foods Company Price and EPS Surprise
Dean Foods Company Price and EPS Surprise | Dean Foods Company Quote
Why a Likely Positive Surprise?
Our proven model shows that Dean Foods is likely to beat earnings because it has the right combination of the two key components.
Zacks ESP: Dean Foods currently has an Earnings ESP of +2.44%. This is because the Most Accurate estimate stands at 42 cents, while the Zacks Consensus Estimate is pegged lower at 41 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Dean Foods carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings. Conversely, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
The combination of Dean Foods’ Zacks Rank #3 and positive ESP make us reasonably confident of a positive earnings beat.
What's Driving the Better-than-Expected Earnings?
Dean Foods appears promising, driven by its robust brand portfolio, ongoing strategic initiatives and focus on improving core business activities. The company’s strong portfolio of brands provides a competitive advantage, alongside fortifying its customer base. Moreover, the company is well positioned in the industry as it is one of the low-cost producers. Additionally, it is striving to extend this advantage through cost-reduction activities across its business.
Further, management remains committed toward taking strategic steps to optimize capital allocation and concentrate on core business activities. The company’s strategic measures are primarily focused on three controllable factors – price realization, cost productivity and volumes at margins – which will aid in delivering appropriate returns.
Shares of Dean Foods have yielded a return of nearly 9.1% in the past six months, outperforming the Zacks categorized Consumer Staples sector’s fall of 4.9% in the same time frame.
Taking cue from this strength, and by focusing on cost management and constant brand building initiatives, the company remains on track to consolidate its position in the dairy industry and boost shareholder value.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
The Gap Inc. (GPS - Free Report) , scheduled to report earnings on Feb 23, currently has an Earnings ESP of +2.22% and a Zacks Rank #3.
Costco Wholesale Corp. (COST - Free Report) , slated to report earnings on Mar 2, currently has an Earnings ESP of +0.74% and a Zacks Rank #3.
Dollar Tree Inc. (DLTR - Free Report) , expected to release earnings on Mar 7, has an Earnings ESP of +0.75% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>