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NEW YORK (TheStreet) -- After the market close this afternoon, Diamond Foods (DMND) reported lower than expected financial results for the fiscal 2016 first quarter.

The food company reported earnings of 28 cents per share on revenue of $224.8 million for the quarter ended October 31.

Analysts had estimated for earnings of 30 cents per share on $233.8 million in revenue for the latest quarter.

Revenue declined by 8.8% year-over-year as nuts revenue dropped 16.1% and snacks revenue decreased 0.7%.

Revenue was "adversely impacted by our decision to exit high-volume, low-margin nut SKUs and by lower net price realization in international walnut sales," CEO Brian Driscoll said in a statement. "Our business remains on track to meet our original annual outlook."

In October, Diamond Foods agreed to be acquired by Snyder's-Lance (LNCE) in a cash and stock transaction valued at about $1.91 billion. The deal is on track to close in the first quarter of the 2016 calendar year.

Diamond Foods stock closed down by 0.33% to $39.04 on Wednesday afternoon.

Separately, TheStreet Ratings team rates DIAMOND FOODS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate DIAMOND FOODS INC (DMND) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: DMND

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.