NEW YORK (TheStreet) -- Shares of Dean Foods Co. (DF) are down -4.63% to $14.64 after the company reported a first quarter 2014 loss from continuing operations of 9 cents per share, compared to first quarter 2013 earnings of $5.30 per share.
On an adjusted basis, the first quarter 2014 diluted loss from continuing operations was 5 cents per share, compared to first quarter 2013 adjusted earnings of 31 cents per share.
First quarter 2014 operating income totaled $5 million, compared to first quarter 2013 operating income of $30 million. First quarter 2014 adjusted operating income totaled $7 million, compared to $74 million in the year-ago period.
Net loss totaled $9 million for the first quarter of 2014. On an adjusted basis, first quarter net loss totaled $5 million.
Net sales for the first quarter of 2014 totaled $2.3 billion, compared to $2.3 billion of net sales in the first quarter of 2013.
"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 notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Food Products industry and the overall market, DEAN FOODS CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- DF, with its decline in revenue, slightly underperformed the industry average of 2.3%. Since the same quarter one year prior, revenues slightly dropped by 6.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for DEAN FOODS CO is rather low; currently it is at 20.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.64% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$72.19 million or 183.41% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: DF Ratings Report