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Can Dean Foods (DF) Keep the Earnings Streak Alive This Quarter?

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Dean Foods CompanyDF , a firm in the Dairy Products industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, DF has beaten estimates by at least 25% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, DF expected to earn 17 cents per share, while it actually produced earnings of 24 cents, a beat of 41.2%. Meanwhile, for the most recent quarter, the company looked to earn 26 cents per share, when it actually saw an earnings of 33 cents per share instead, representing 26.9% positive surprise.

Thanks in part to this history, estimates have moved higher for Dean Foods over the last 60 days. In fact, the Earnings ESP for DF is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for DF, as the firm currently has a Zacks Earnings ESP of 4.17%, so another beat could be around the corner.

This is particularly true when you consider that DF has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that DF could see another beat at its next report, especially if recent trends are any guide.

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DEAN FOODS CO (DF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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