DALLAS (AP) — Dean Foods Co. is updating its profit forecast, now that the milk company's 1-for-2 reverse stock split is complete.
Companies typically hold reverse stock splits to boost the value of their remaining shares and reduce the number of shares outstanding. Under the split, every two shares of its common stock were automatically combined into one share. Dean Foods shares dipped 2 cents to finish at $9.67 on Tuesday, and the stock will begin trading on a split-adjusted basis on the New York Stock Exchange on Wednesday.
Dean Foods reiterated its forecasts for the third quarter and full year, but updated figures to account for the split. It is forecasting adjusted earnings of 10 cents to 16 cents per share for the quarter and 94 cents to $1.06 per share for fiscal 2013.
Dean Foods, based in Dallas, is the nation's largest milk processor. It sells under more than 50 local and regional dairy brands and private labels, including TruMoo, Alta Dena, Land o Lakes and Lehigh Valley Dairy Farms.