Inside Diamond Foods' Shame: Key Takeaways from the Recent Earnings Misshttp://www.fool.com/investing/general/2013/12/09/inside-diamond-foods-shame-and-3-key-takeaways-fro.aspx Tamara Walsh
December 9, 2013
Diamond Foods (NASDAQ: DMND) has endured a lot over the past two years. Of course, the same can be said for the snack-food maker's shareholders. The stock hit a low of $12.85 last November, following an accounting scandal involving improper payments to walnut growers. Diamond Foods' CEO and CFO were both ousted as a result, though the damage didn't end there . Between late 2011 and the start of this year the stock lost more than 80% of its value -- devastating Diamond Foods shareholders in its wake.
Now the company is promising a brighter future. But, can investors really trust Diamond Foods again after the mess it's made? Let's dig a little deeper and see what the company's first-quarter earnings tell us about the health of the business .
A rough start to fiscal 2014
Charges related to a lawsuit stemming from the accounting scandal in early 2012 were part of the problem. In fact, in August Diamond Foods agreed to pay $96 million to the SEC to settle the suit . However, aside from these costs, the quarterly results also reflect a troubling sales trend in its nuts business. For the period ended Oct. 31, Diamond suffered a 17.1% decline in nut sales, while ov