Dean Foods stock price took a hit in pre-market Wednesday, as the dairy food & beverage company reported a sharper loss than expected for the fourth quarter, and halted its dividend payouts.
On an adjusted basis, Dean Foods loss of -50 cents a share in the quarter was worse than the -26 cents a share loss expected by analysts surveyed by FactSet. Sales of $1.93 billion, however, were higher than the FactSet consensus estimate of $1.91 billion.
The company announced that it is suspending its quarterly dividend.
CEO Ralph Scozzafava indicated that the company is actively exploring ways to enhance shareholder value, and that it is reviewing “strategic alternatives” for that purpose. That includes consideration of options such as the sale of certain assets or the formation of a joint venture. The largest U.S. supplier of milk and dairy food is apparently facing challenges from a growing popularity of non-dairy and private-label products.
The stock plunged as much as -16% in pre-market trading Wednesday.
a distributor of milk and other dairy products
Industry FoodMeatFishDairy