For the fiscal third quarter Diamond Foods reported earnings of 11 cents a share, missing the Capital IQ Consensus Estimate of 17 cents a share by 6 cents. Revenue grew 3.2% from the year-ago quarter to $190.9 million. Analysts expected revenue of $193.18 million for the quarter.
Must read: Warren Buffett's 25 Favorite Stocks
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Food Products industry. The net income has significantly decreased by 248.5% when compared to the same quarter one year ago, falling from $10.14 million to -$15.06 million.
- The debt-to-equity ratio is very high at 4.23 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.21, which clearly demonstrates the inability to cover short-term cash needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Food Products industry and the overall market, DIAMOND FOODS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for DIAMOND FOODS INC is currently lower than what is desirable, coming in at 28.96%. Regardless of DMND's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, DMND's net profit margin of -6.82% significantly underperformed when compared to the industry average.
- Net operating cash flow has declined marginally to $48.93 million or 5.00% when compared to the same quarter last year. Despite a decrease in cash flow DIAMOND FOODS INC is still fairing well by exceeding its industry average cash flow growth rate of -27.01%.
- You can view the full analysis from the report here: DMND Ratings Report
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts