Analysts are expecting the packaged food company to report a year over year rise in earnings per share but a decline in revenue for the most recent quarter.
The company has been forecast by analysts surveyed by Thomson Reuters to post earnings of 21 cents per share on revenue of $210.09 million for the fourth quarter.
Last year, Diamond Foods said its non-GAAP earnings came in at 19 cents per share on net sales of $219.1 million for the quarter ended July 31, 2014.
Diamond Foods is a San Francisco-based snack food company with brands including Pop Secret popcorn, Kettle brand potato chips, Diamond culinary nuts and Emerald nuts.
Additionally, earlier this month Diamond announced that is has come to an agreement with Disney (DIS) - Get Report that will make its pop secret popcorn the official popcorn of the Walt Disney World Resort in Orlando, FL and the Disneyland Resort in Anaheim, Calif.
Shares of Diamond closed at $31.97 on Monday 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, good cash flow from operations, 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.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DIAMOND FOODS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, DIAMOND FOODS INC continued to lose money by earning -$6.29 versus -$8.13 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus -$6.29).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 106.0% when compared to the same quarter one year prior, rising from -$105.63 million to $6.29 million.
- Net operating cash flow has significantly increased by 96.66% to -$5.46 million when compared to the same quarter last year. In addition, DIAMOND FOODS INC has also vastly surpassed the industry average cash flow growth rate of 9.00%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 8.4%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: DMND