Diamond Foods Loss Widens; Stock Tanks - Update

(RTTNews) - Diamond Foods Inc (DMND) Thursday reported a wider loss for the third quarter, hurt mostly by debt charges, even as sales climbed about three percent on strength at its snacks business, while the nuts business slumped. Results for the quarter missed Wall Street estimates.

Following the announcement, Diamond Foods shares dropped about 9 percent in after-hours trade on the Nasdaq.

Diamond has been grappling with falling sales at its nuts business, where it sees headwinds from higher commodity costs.

For the third quarter, the San Francisco-based packaged food company posted a net loss of $105.6 million or $3.63 per share, compared with a loss of $15.6 million or $0.71 per share last year.

Results for the quarter include debt charges of $83 million.

Excluding items, adjusted earnings for the quarter were $3.5 million or $0.11 per share, compared with earnings of $2 million or $0.08 per share a year ago.

On average, five analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the third quarter climbed 3.2 percent to $190.9 million from $184.9 million in the prior year. Analysts expected revenues of $191.7 million for the quarter.

Snacks segment sales grew 9.6 percent, which includes products sold under the Kettle U.S., Kettle U.K. and Pop Secret brands.

Nuts segment sales slid 5 percent, and which includes products in the Diamond of California and Emerald brands.

Gross margin for the quarter was up 20 basis points at 23.6 percent.

The company's stock closed Thursday at $33.32, up $0.09 or 0.27%, on a volume of 0.42 million shares. In after hours, the stock dropped $2.87 or 8.61%, trading at $30.45.