Why Amira Nature Foods Ltd. Shares Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of specialty rice processor Amira Nature Foods  (NYSE: ANFI  ) surged 18% today after its quarterly results and outlook impressed Wall Street.

So what: The stock has pulled back sharply in recent months on red flags surrounding its financials, but Amira's fourth-quarter results -- adjusted earnings per share of $0.47 on revenue of $186.6 million versus the consensus of $0.33 and $162.2 million -- coupled with solid guidance are quickly restoring some investor confidence. In fact, adjusted operating margin increased by more than 100 basis points from the year-ago period to 14.1%, suggesting that Amira's operating efficiencies and competitive position are improving as well.

Now what: Management said it expects 2015 revenue and adjusted EBITDA to jump by more than 20% and maintained its long-term revenue outlook for $1 billion. "We are focused on a dramatically increasing class of consumers in our home market, while also exploiting new opportunities around the world to further grow our business," said Chairman and CEO Karan Chanana in a press release. "To bolster our growth in India we established eight company owned and managed distribution centers in key cities around the country and plan to add seven more distribution centers by the end of the fiscal 2015 to further support our success in India." When you couple today's big rally with the serious concerns that still surround Amira, however, I'd continue to watch things play out from the sidelines.

More reliable ways to build wealth
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

 


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2997463, ~/Articles/ArticleHandler.aspx, 10/21/2014 9:50:50 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement