Diamond Foods Loss Narrows, Tops View; Shares Up 5%

(RTTNews) - Packaged food company Diamond Foods Inc. (DMND), Thursday reported a loss for the fourth-quarter that narrowed from a year ago, as last year's results were weighed down by hefty charges. Meanwhile, adjusted earnings for the quarter improved from last year and trumped analysts estimates, as did revenues.

The company's shares jumped over five percent in after-hours trade, following the news.

San Francisco, California-based Diamond Foods' fourth-quarter loss narrowed to $1.9 million or $0.06 per share from $143.7 million or $6.56 per share last year.

Excluding one-time gains and charges, adjusted earnings for the quarter rose to $0.19 per share from $0.10 per share a year ago. On average, six analysts polled by Thomson Reuters expected earnings of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.

Last year, among other items, the company recorded a loss on securities settlement liability of $96.1 million and asset impairments of $36.0 million.

Revenues for the fourth quarter rose 9.6 percent to $219.1 million from $199.8 million in the prior year. Analysts had a consensus revenue estimate of $208.41 million for the quarter.

Snacks segment sales increased 11.1 percent to $130.1 million, while nuts segment sales increased 7.5 percent to $88.9 million.

Gross margin dropped to 22.5 percent from 26.6 percent last year, hurt largely by higher logistics expenses and tree nut commodity cost pressures.

"… Cost inflation adversely impacted gross margin in the quarter, including tree nut cost increases and higher logistics expenses. We have taken measures designed to counter these cost increases and to improve gross margins going forward," CEO Brian Driscoll said.

Looking forward to the full year 2015, the company expect adjusted earnings of $0.90 to $1.10 per share. Analysts currently expect earnings of $1.18 per share for the year.

DMND closed Thursday's trading at $26.62, down $0.21 or 0.78%, on the Nasdaq. However, in after-hours trade, the stock gained $1.38 or 5.18%.