Shares of Dean Foods Co. plummeted 9.2% toward a three-month low in premarket trade Tuesday, after the food and beverage company beat second-quarter earnings and sales expectations, but slashed its full-year profit outlook, citing inflation and private label competition. The company swung to a net loss of $40.1 million, or 44 cents a share, from a profit of $17.6 million, or 19 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 16 cents, above the FactSet consensus of 15 cents. Revenue rose to $1.95 billion from $1.93 billion, and beat the FactSet consensus of $1.91 billion. The company cut its 2018 adjusted EPS guidance range to 32 cents to 52 cents from 55 cents to 80 cents. “We’re experiencing significantly higher than expected non-dairy inflation along with continued retailer investment in private label which is impacting our branded product mix,” said Chief Executive Ralph Scozzafava. The company said it continues to implement its cost-cutting plan aimed at $150 million in annual savings. The stock has tumbled 18% year to date through Monday, while the S&P 500 has gained 6.6%.
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