NEW YORK (TheStreet) -- Shares of Dean Foods Co. (DF) are down -9.36% to $145.33 in pre-market trade after the largest U.S. dairy processor withdrew its full-year earnings forecast as it said the company is operating in the most difficult environment in its history, Bloomberg reports.
“The balance of the year appears rocky, with a continued unpredictable and volatile dairy commodity environment,” said CEO Gregg Tanner in the company’s second-quarter earnings statement. “For the time being, we are going to provide specific guidance only for the next quarter, where our visibility is better.”
Dean forecast an adjusted third-quarter net loss of 5 cents to 15 cents a share. That compares with a 24 cent profit, based on the average of 11 analysts’ estimates compiled by Bloomberg.
The company is battling higher prices for raw milk. Class I Mover, a measure of raw milk costs, was on average 31% higher in the second quarter compared with a year earlier, the company said.
TheStreet Ratings team rates DEAN FOODS CO as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their 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 revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and a generally disappointing performance in the stock itself."
- You can view the full analysis from the report here: DF Ratings Report