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Dean Foods (DF) Misses Q4 EPS by 1c, Offers FY Guidance

February 26, 2018 6:47 AM EST

Dean Foods (NYSE: DF) reported Q4 EPS of $0.25, $0.01 worse than the analyst estimate of $0.26. Revenue for the quarter came in at $1.93 billion versus the consensus estimate of $1.96 billion.

GUIDANCE:

Dean Foods sees FY2018 EPS of $0.55-$0.80, versus the consensus of $0.87.

"At Dean Foods, executing our strategic initiatives is paramount to our success in this dynamic and competitive environment. We are making important choices in 2018 and taking aggressive but necessary steps to drive our strategic plan, reset our company to make Dean Foods more competitive, and enable us to deliver solid and consistent earnings and cash flow over the long term. We must dramatically reduce our cost structure to match our smart volume today, creating the right network and cost base with an eye toward the future. Our enterprise-wide cost productivity plan will create a runway for increased and ongoing productivity benefits in 2019 and beyond as we target an incremental $150 million in annual run-rate savings by 2020. We have the right strategic plan and a strong team in place to drive our business and company forward.

"Due to the phased implementation and timing of our initiatives balanced against our investments and headwinds, we expect to deliver full year adjusted earnings per share in the range of $0.55 to $0.80. We expect the first quarter earnings to be disproportionately lower than the fourth quarter of 2017, and we expect to see an increase in adjusted earnings per share as we move through the year and into 2019. With the significant one-time investments in our productivity plan, we expect free cash flow performance of $30 million to $50 million as we fund these strategic investments and expect full year capital expenditures in the range of $135 million to $160 million," concluded Scozzafava.

We provide guidance on a non-GAAP basis and are unable to provide a full reconciliation to GAAP without unreasonable efforts as we cannot predict the amount or timing of certain elements which are included in reported GAAP results, including mark-to-market adjustments of hedging activities, asset impairment charges, and other non-recurring events or transactions that may have a significant impact to reported GAAP results.

For earnings history and earnings-related data on Dean Foods (DF) click here.



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