Dean Foods Co. on Tuesday reported first-quarter net income of $39.2 million, after reporting a loss in the same period a year earlier.
On a per-share basis, the Dallas-based company said it had profit of 43 cents. Earnings, adjusted for one-time gains and costs, came to 45 cents per share.
The results topped Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 38 cents per share.
The milk company posted revenue of $1.88 billion in the period, which met Street forecasts.
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Dean Foods expects second-quarter earnings in the range of 32 cents to 40 cents per share.
Dean Foods shares have increased 6 percent since the beginning of the year. The stock has climbed 14 percent in the last 12 months.
Dean Foods Buys Friendly's Ice Cream Making Business
The Friendly's restaurant chain has sold its ice cream manufacturing and retail business to Dean Foods Co. for $155 million.
Dallas-based Dean announced Monday that it will continue to manufacture ice cream and novelty ice cream products in Wilbraham, Massachusetts.
There are more than 260 Friendly's restaurants. They will continue to be owned by an affiliate of Sun Capital Partners Inc. with no management changes.
Friendly's ice cream is distributed to more than 8,000 supermarkets and retailers across the U.S. and has seen 105 percent growth in retail business in the past five years.
The transaction is expected to close late in the second quarter, subject to regulatory approvals.
Friendly's was founded in 1935 in Springfield, Massachusetts. Dean Foods is the nation's largest direct-to-store distributor of milk and other dairy products.