Diamond Foods Earnings: Beats the Street on Profit Rise, Stock Up 5%

Diamond Foods, Inc. (NASDAQ:DMND) reported net income above Wall Street’s expectations for the fourth quarter. Diamond Foods, Inc. is a food company deals in processing, marketing and distributing culinary, in-shell, ingredient nuts and snack products.

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Diamond Foods Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Diamond Foods, Inc. rose to $8.5 million (37 cents per share) vs. $6.7 million (29 cents per share) in the same quarter a year earlier. This marks a rise of 26.8% from the year earlier quarter.

Revenue: Rose 31.8% to $232.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DMND reported adjusted net income of 52 cents per share. By that measure, the company beat the mean estimate of 44 cents per share. It beat the average revenue estimate of $216.3 million.

Quoting Management: “Our base Diamond business delivered record financial results this quarter, with our snack portfolio up a solid 16 percent on an organic basis,” said Michael J. Mendes, Chairman, President and CEO. “We’re particularly pleased that we could achieve such strong performance while effectively managing the Pringles integration.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 45.5%, with the biggest boost coming in the third quarter when revenue rose 60.7% from the year earlier quarter.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the third quarter, by 2 cents in the second quarter, and by 5 cents in the first quarter.

Gross margin shrank 0.3 percentage point to 24.5%. The contraction appeared to be driven by increased costs, which rose 32.3% from the year earlier quarter while revenue rose 31.8%.

Competitors to Watch: Kraft Foods Inc. (NYSE:KFT), General Mills (NYSE:GIS), Pepsico Inc (NYSE:PEP), Kellogg Company (NYSE:K), Ralcorp Holdings Inc. (NYSE:RAH), The Procter & Gamble Co. (NYSE:PG), Inventure Foods, Inc. (NASDAQ:SNAK), The Hershey Company (NYSE:HSY), and Nestle Foods Nigeria PLC (NESTLE).

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(Source: Xignite Financials)