NEW YORK( TheStreet) -- Dean Foods ( DF) stock has tumbled more than 4% after the company's earnings fell in the fourth quarter and received analyst downgrades.

Dean Foods stock has fallen 5.2% to $14.39 in Thursday afternoon trading.

Stephens analyst Farha Aslam says she reduced Dean Foods to equal-weight from overweight given the company's fourth quarter earnings miss and 2010 guidance that is below her expectations and the consensus.

"Our thesis was that the shares were attractively valued," Aslam writes in a note to investors. But now, "we believe the opportunity in the stock is less compelling."

Aslam says that concerns about escalating dairy commodity prices for the next several months will put downward pressure on Dean Foods shares. Aslam in her note also makes a reference to Dean Foods' decision to buy out a disadvantageous distribution contract inherited as part of a past acquisition. The cost of the exit is estimated to be about $5 million pre-tax. That's about 1 to 2 cents a share.

Dean Foods is forecasting adjusted earnings of $1.54 to $1.64 for 2010, compared with the consensus forecast of $1.68. The company's fourth quarter performance was below even its own expectations. Dean Foods said that sharply rising commodities put pressure on both its Fresh Dairy Direct and Morningstar segments.

Dean Foods reported adjusted earnings of 31 cents a share versus 46 cents a share the previous year. The consensus estimate was 37 cents a share.

Aslam says retailers have been seeking price concessions and bidding different private label dairy suppliers against each other. As a result, Dean Foods has been forced to lower its prices in order to retain its share.

Related food stocks have also edged lower in midday trading.

ConAgra Foods ( CAG) is down 0.2% to $23.10. American Dairy ( ADY) has dipped 0.6% to $23.60. Lifeway Foods ( LWAY) has edged lower to $11.60, down 0.9%.

-- Reported by Andrea Tse in New York

>>See our new stock quote page.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More from Stocks

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain