(Adds analyst comments)

CHICAGO, June 25 (Reuters) - Dean Foods Co (DF.N: Quote, Profile, Research) raised its earnings outlook for the second quarter on Wednesday, citing cost-cutting and price increases, sending shares up 13 percent.

Dean, which sells milk and other dairy products, said it now expects to earn at least 32 cents per share in the second quarter, up from its prior forecast for a range of 26 to 31 cents.

Analysts on average expected 29 cents per share, excluding items, according to Reuters Estimates.

The Dallas-based company also left its full-year outlook unchanged and said it still expects to earn at least $1.20 per share for the full year.

Dean, whose products include Horizon Organic milk and International Delight coffee creamers, has been pressed to control costs and implement price increases as it faces rising dairy costs.

"While the raised guidance is welcome news, we remain cautious," JP Morgan analyst Terry Bivens said in a research note. "Continued high milk prices, rising fuel and resin costs and a private label trade-down effect may pressure earnings more than (Wall) Street expects."

William Pecoriello, an analyst with Morgan Stanley who rates the stock "overweight," wrote in a research note that "the market is overly pessimistic on Dean Foods' prospects" and that the company's long-term prospects are still positive.

The company's shares were up $2.44 at $20.83 in morning trading on the New York Stock Exchange. (Reporting by Martinne Geller and Erin Zureick, editing by Gerald E. McCormick and Dave Zimmerman)