Diamond Foods (NASDAQ:DMND) is down over 8 percent as a market assimilates its huge FQ2 miss. EPS of $0.05 is of estimates by $0.03 while revenue of $220.8 million is short of consensus by $18.23 million. Underperformance by the nuts segment was a key contributory here sales falling 29.6 percent. The company has split its operations into two segments namely Snacks and Nuts. The snacks division saw an improvement in net sales by 7.2 percent and an improvement in gross profit from $28.4 million to $34.8 million. Sales in the nuts division sank 29.6 percent due to lower walnut supplies and SKU restructuring.