Diamond Foods (DMND) Stock Gains in After-Hours Trading on Earnings Beat

NEW YORK (TheStreet) -- Shares of Diamond Foods (DMND) were gaining 3.6% to $30 after-hours on Thursday after the food company beat analysts' estimates for earnings in the fiscal third quarter.

Diamond Foods reported earnings of 23 cents a share for the fiscal third quarter, above analysts' estimates of 15 cents a share for the quarter. Revenue fell 2.5% year over year to $186.06 million for the quarter, below analysts' estimates of $195.34 million for the quarter.

The company narrowed its earnings guidance for fiscal 2015 to between $1 and $1.50 a share from its previous range of 95 cents to $1.10 a share. Analysts expect the company to report earnings of $1.04 a share for the fiscal year.

TheStreet Ratings team rates DIAMOND FOODS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate DIAMOND FOODS INC (DMND) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, a generally disappointing performance in the stock itself and poor profit margins."

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