Dean Foods misses by $0.03, reports revs in-line; guides Q1 EPS below consensus; guides FY17 EPS below consensus:
- Reports Q4 (Dec) adj. earnings of $0.38 per share, $0.03 worse than the Capital IQ Consensus of $0.41; revenues fell 0.2% year/year to $2.02 bln vs the $2.01 bln Capital IQ Consensus. Total volume across all products was 653 million gallons for the fourth quarter of 2016, a 0.8% decline compared to total volume of 658 million gallons in the fourth quarter of 2015.
- Based on fluid milk sales data published by the USDA through December, fluid milk volume decreased 1.2% year-over-year in the fourth quarter of 2016 on an unadjusted basis. On this same basis, Dean Foods' share of U.S. fluid milk volumes increased by 10 basis points year-over-year.
- Co issues downside guidance for Q1, sees EPS of $0.12-0.20, excluding non-recurring items, vs. $0.40 Capital IQ Consensus Estimate.
- Co issues downside guidance for FY17, sees EPS of $1.35-1.55, excluding non-recurring items, vs. $1.58 Capital IQ Consensus Estimate.
- Going forward, we will transition to providing guidance on an annual basis only. We are driving our strategy with a long-term perspective and feel it's appropriate to give a better view that emphasizes sustainable value creation for our shareholders.
- "Our 2017 growth and productivity agendas are robust and will ramp up through the year, driving a larger portion of our earnings into the back half. We expect to deliver full-year adjusted earnings per share of $1.35 to $1.55. In the first quarter, we expect dairy commodity inflation of nearly 20% and a roughly 1% decline in total volume performance versus prior year. As we continue to invest in our strategic initiatives and brand building for future growth, we expect first quarter adjusted earnings per share in the range of $0.12 to $0.20."
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