Dean Foods has missed the Zacks Consensus Estimate in each of the last two-quarters and that has led to lower earnings estimates. The Zacks Rank focuses on earnings estimate revisions, and as those numbers move lower so does the Rank. DF has slipped to a Zacks Rank #5 (Strong Sell) and is the Bear of the Day.
Description
Dean Foods Company is a leading processor and distributor of fresh milk and other dairy products and a leader in the specialty foods industry. The company produces a full line of company-branded and private label dairy products such as milk and milk-based beverages, ice cream, coffee creamers, half and half, whipping cream, whipped toppings, sour cream, cottage cheese, yogurt, dips, dressings and soy milk.
Earnings
As noted above, each of the last two-quarters were misses, with the company reporting earnings below the Zacks Consensus Estimate. The December 2016 quarter saw earnings of $0.38 when $0.41 was expected. The company also missed the top line estimate and as a result, the stock fell 9.4% in the session following the report.
The most recent quarter was reported on 5/9 and was also a miss. The company reported EPS of $0.13 when the Zacks Consensus was 4 cents higher than that. The 23.5% negative earnings surprise came with an impressive beat on the topline of $32M or about 1.4% ahead of the estimate. The stock was up 1.36% in the session following the report.
Estimates
Estimates for DF have been falling. The Zacks Consensus for 2016 stood at $1.63 in January and slipped to $1.44 by April. Following the most recent earnings, the number has tumbled down to $1.36.
Valuation
The valuation looks good right now for DF. The 13.5x forward multiple is well below the 24x industry average. The price to book multiple of 2.8x is also well below the 4.6x industry average. Finally price to sales at 0.2x is well below the 1.5x industry average. This tells me that the stock is trading at a discount, so while estimates are falling the valuation looks pretty good.
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Dean Foods has missed the Zacks Consensus Estimate in each of the last two-quarters and that has led to lower earnings estimates. The Zacks Rank focuses on earnings estimate revisions, and as those numbers move lower so does the Rank. DF has slipped to a Zacks Rank #5 (Strong Sell) and is the Bear of the Day.
Description
Dean Foods Company is a leading processor and distributor of fresh milk and other dairy products and a leader in the specialty foods industry. The company produces a full line of company-branded and private label dairy products such as milk and milk-based beverages, ice cream, coffee creamers, half and half, whipping cream, whipped toppings, sour cream, cottage cheese, yogurt, dips, dressings and soy milk.
Earnings
As noted above, each of the last two-quarters were misses, with the company reporting earnings below the Zacks Consensus Estimate. The December 2016 quarter saw earnings of $0.38 when $0.41 was expected. The company also missed the top line estimate and as a result, the stock fell 9.4% in the session following the report.
The most recent quarter was reported on 5/9 and was also a miss. The company reported EPS of $0.13 when the Zacks Consensus was 4 cents higher than that. The 23.5% negative earnings surprise came with an impressive beat on the topline of $32M or about 1.4% ahead of the estimate. The stock was up 1.36% in the session following the report.
Estimates
Estimates for DF have been falling. The Zacks Consensus for 2016 stood at $1.63 in January and slipped to $1.44 by April. Following the most recent earnings, the number has tumbled down to $1.36.
Valuation
The valuation looks good right now for DF. The 13.5x forward multiple is well below the 24x industry average. The price to book multiple of 2.8x is also well below the 4.6x industry average. Finally price to sales at 0.2x is well below the 1.5x industry average. This tells me that the stock is trading at a discount, so while estimates are falling the valuation looks pretty good.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>