Diamond Foods (DMND) Stock Gains on Mixed Third Quarter Results

NEW YORK (TheStreet) -- Diamond Foods (DMND) shares are up 3.73% to $30.05 in pre-market trading on Friday after the packaged food company released its third quarter earnings results after the closing bell yesterday.

The Stockton, CA-based company reported third quarter net income of $6.3 million after reporting a net loss in the year ago period, earning 23 cents per share on a adjusted basis. 

Revenue for the period fell 2.5% to $186.1 million from $191 million in the year ago quarter.

Analysts on average were expecting the company to report earnigns of 14 cents per share on revenue of $195.3 million.

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."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

DMND Chart DMND data by YCharts

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