Why Dean Foods (DF) Is Down Today

NEW YORK (TheStreet) -- Dean Foods (DF) was falling 10.2% to $13.65 on Tuesday following fourth-quarter earnings that missed analysts' expectations. It also issued guidance for 2014 below Wall Street forecasts.

Dean Foods reported fourth-quarter earnings of 18 cents a share. Analysts surveyed by Capital IQ expected earnings of 19 cents a share. Revenue fell 7% to $2.3 billion in the quarter, which was in line with analysts' estimates of $2.29 billion.

The company's share of U.S. fluid milk sales volume increased to 35.7% in the quarter, up from 34.9% in the third quarter. Dead Foods' fluid milk volumes decreased 9% year over year, however, because of the loss of business with a large retailer. Total volumes dropped 8% from the year-earlier quarter across all products.

Dean Foods expects volumes to remain weak in 2014. The company said it expects earnings of between 73 cents and 86 cents a share for2014;analysts expect earnings of $1.12 a share. 

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TheStreet Ratings team rates DEAN FOODS CO as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about its recommendation:

"We rate DEAN FOODS CO (DF) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself."

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