|
 |
|
|
DF plans to spin off its natural and organic business, WhiteWave. |
|
|
Released on Thursday, August 9, 2012, 4:30 AM ET
Pittsburgh, PA (SpeculatingStocks) - Who said food stocks were boring? Well, they are heating up now after Dean Foods (NYSE:DF) reported a spectacular surge in earnings with Q2 adjusted earnings moving 100% higher to $0.36 a share. Revenue fell 5% to $3.13 billion, but investors didn't mind one bit, sending shares 40% higher by the end of the day Wednesday to close up $5.04 to $17.46 or 40%+.
As natural (see "Reed's Q2 Revenue Increases 27%") and organic beverages continue to become popular, DF decided that it was time to spin off its WhiteWave business. DF's WhiteWave produces items that include Horizon Organic milk and Silk soymilk.
Dean Foods expects to retain 80% ownership in WhiteWave and its current CEO will move over to the CEO of WhiteWave, stepping down from CEO of Dean Foods while remaining Chairman.
The company has steadily grown its top line from $11.1 billion in 2009 to $12.1 billion in 2010 to $13 billion in 2011. The improvement in DF earnings was a decidedly important note in the view of investors. Investors aren't concerned with Dean Foods' top line as they know it will continue to be there.
DF is now at its highest level since early 2010. Another natural and organic name to take a look at that has been trending higher is The Hain Celestial Group (NASDAQ:HAIN).
Find more stocks on the SpeculatingStocks homepage.
Comments:
|
|
