American Italian Pasta Doubles Profit

Despite American Italian Pasta(AIPC Quote) more than doubling its profit in the second quarter, shares nosedived in morning trading.

Shares of the dry pasta maker were down 18% to $26.20, after it reported earnings of $26.2 million, or $1.21 a share. This compares with a profit of $9.4 million, or 50 cents a share, a year earlier.

Revenue rose 16% to $162.3 million, while volume increased 10%. Average selling prices grew 11% and cost of goods sold jumped 10% to $118.2 million.

TheStreet.com has rated the company a buy since November 2008 based on its growth and solid stock performance. In addition, the stock price has more than quadrupled over the past year, and it seems there is still upside potential under most market conditions.

Separately, on Tuesday the company named Cathleen S. Curless as a board member. The new position brings the board's total to 10 members.