NEW YORK (TheStreet) -- Shares of Dean Foods (DF) rose 4.79% to $17.06 in morning trading Monday after the largest U.S. milk processor reported first-quarter earnings and issued second-quarter guidance that surpassed analysts' expectations.
Milk prices have been on the decline, but the company did not pass on those benefits to consumers during the quarter.
The company reported adjusted earnings of 24 cents a share, which beat the consensus estimate of 18 cents a share from analysts polled by Thomson Reuters. Revenue in the first quarter fell 12.4% to $2.05 billion, which missed analysts' expectations of $2.1 billion.
For the second quarter, Dean Foods issued EPS guidance in the range of 20 cents to 30 cents. Analysts polled by Thomson Reuters expect earnings of 20 cents a share.
More than 2.1 million shares had changed hands as of 11:02 a.m., compared to the daily average volume of 1,634,180.
Separately, 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, good cash flow from operations and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and generally higher debt management risk."