Please ensure Javascript is enabled for purposes of website accessibility

Diamond Foods in the Rough Again After Earnings Miss

By Tamara Walsh - Dec 5, 2013 at 4:51PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Diamond Foods delivered sour results for its first quarter of fiscal 2014.

Diamond Foods (DMND.DL) reported quarterly earnings after the bell on Thursday that missed analysts' expectations for the three-month period. For its first quarter of fiscal 2014, Diamond Foods posted a non-generally accepted accounting principles profit of $0.18 per share, excluding millions in charges the company paid to settle lawsuits stemming from an accounting scandal in early 2012. Factoring in these expenses, the snack-food maker suffered a net loss of $42.2 million, or $1.92 per share. Analysts were looking for earnings of $0.14 per share, down from previous estimates for EPS of $0.18 in the quarter.

Revenue also suffered in the period. Net sales fell 9.2% to $234.7 million in the first quarter, while Wall Street was expecting revenue of $237.1 million. If there is a semi-bright spot in all of this, it's that management remains optimistic about the company's turnaround. Diamond Foods CEO Brian Driscoll said, "Looking ahead, we expect to benefit from the improved foundation of our business, and remain confident that we are on track to achieve earnings improvement in fiscal 2014."

Unfortunately, the results didn't deliver the much-needed boost investors were looking for in shares of Diamond Foods. The stock was lower on the news in after-hours trading. It's been a rough couple of years for the stock, with shares losing more than 80% of their value from late 2011 into the start of this year because of an accounting scandal involving improper payments to walnut growers. In August, Diamond Foods was forced to pay $96 million to the SEC to settle a lawsuit related to the accounting mishap.

Nevertheless, the stock is up more than 78% on the year, trading at about $24 a share.


 
 
 
 
 
 
 
 
 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Diamond Foods, Inc. Stock Quote
Diamond Foods, Inc.
DMND.DL

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
311%
 
S&P 500 Returns
110%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.