Shares of Dean Foods Co. slid in premarket trading Tuesday after the dairy producer reported worse-than-expected quarterly results and trimmed its full-year guidance because of competitive pressures.
Dean Foods reported second-quarter earnings of $17.6 million, or 19 cents per share. The Dallas-based company said earnings adjusted for non-recurring costs were 21 cents per share.
The results did not meet Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 30 cents per share.
The milk company posted revenue of $1.93 billion in the period, which also fell short of Street forecasts. Five analysts surveyed by Zacks expected $1.96 billion.
A year earlier, the company earned $33.4 million, or 36 cents per share, on revenue of $1.85 billion.
"In the second quarter, we faced a challenging and rapidly evolving retail environment," Ralph Scozzafava, chief executive, said in a statement. "We experienced volume pressure from both a macro and competitive perspective that impacted our total volume performance within the quarter, and we anticipate this will carry forward for the remainder of 2017."
Dean Foods lowered its guidance and now expects full-year earnings in the range of 80 cents to 95 cents per share, compared with its prior estimated range of $1.35 to $1.55 per share. Analysts surveyed by FactSet forecast $1.29 per share, on average.
Dean Foods shares have dropped 31 percent since the beginning of the year. The stock has declined 20 percent in the last 12 months. In premarket trading the stock shed nearly 14 percent to $12.95.