(AP) — NEWS: WhiteWave Foods' third-quarter net income fell 8 percent, dragged down by increased expenses. Its adjusted profit and revenue beat Wall Street's expectations.
The company behind Horizon Organic milk and Silk beverages, which was spun off by Dean Foods last year, also lifted the lower end of its full-year adjusted profit forecast. The stock rose in morning trading on Thursday.
DETAILS: WhiteWave said that its operating expenses rose 7 percent to $184.3 million. Interest expense leaped more than four and a half times to $4.5 million, while other expenses surged to $4.1 million from $97,000.
In the North America segment, which includes plant-based foods and beverages, premium dairy and coffee creamers and beverages, revenue rose 8 percent to $534 million. Europe revenue increased 19 percent to $104 million.
WhiteWave also said it is putting its Idaho organic dairy farm business up for sale, so that its Horizon Organic business can focus on processing, marketing and distributing its milk and dairy products. About 5 percent of the company's milk supply has come from the farm historically. It recorded a $7.4 million non-cash write-down to reflect the estimated value of the farm. Proceeds from any sale will go toward lowering debt and for other general corporate purposes.
NUMBERS: For the three months ended Sept. 30, WhiteWave Foods Co. earned $24.3 million, or 14 cents per share. That compares with $26.3 million, or 18 cents per share, last year.
Stripping out the charge tied to the Idaho farm, earnings were 19 cents per share.
Revenue climbed 11 percent to $638.5 million from $574.9 million.
Analysts, on average, expected earnings of 18 cents per share on revenue of $631.3 million, according to a FactSet poll.
FUTURE: WhiteWave now foresees full-year adjusted earnings in a range of 71 cents to 72 cents per share. Its prior guidance called for 69 cents to 72 cents per share.
Wall Street is looking for earnings of 71 cents per share.
The company anticipates a fourth-quarter adjusted profit between 19 cents and 20 cents per share. Analysts predict earnings of 20 cents per share.
STOCK: The shares rose 42 cents, or 2.1 percent, to $20.10 in morning trading. The stock is up about 31 percent since the start of the year.