DF stock is one of the biggest losers on Tuesday after Dean Foods Company (NYSE:DF) reported worse than expected loss for the second quarter.
Texas-based milk and dairy products company Dean Foods has been in all sorts of trouble for quite some time due to the declining demand for milk products in general in the United States, and in its latest quarter, the company reported a further decline in sales. In its Q2 2019 financial results, the company announced that its sales have gone down at an ‘accelerated’ pace and that resulted in losses that proved to be higher than what had been estimated by analysts.
The company stated that there has been a significant decline in the demand for conventional milk, and in the second quarter, the drop accelerated. The losses for the quarter stood at $64 million, which is a significant rise from the $40.1 million loss in the year-ago quarter. The loss per share was pegged at $0.70 a share, which also reflects a significant rise from $0.44 in the year-ago period.
Analysts had estimated total sales of $1.88 billion, but Dean Foods reported sales of $1.84 billion, which reflects a drop of 5.5%.
The disappointing result saw DF stock taking a beating in Tuesday’s trade, as it nosedived by as much as 25% at $1.25.
The company has been working hard to turn around its business in a number of ways, and back in July, the company’s then Chief Executive Officer Ralph Scozzafava stepped down from his position. Former CEO at Gehl Foods, Eric Beringause was named as both the new CEO as well as the President at Dean Foods.
Dean Foods announced the appointment on July 27, and at the time, the company stated that the new CEO was going to be responsible for the company’s transformation. At the time, DF stock rose due to renewed optimism, but the latest results have definitely put a dampener on this.
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