Diamond Foods Profit Tops Estimates; Lifts Lower End Of FY Earnings Guidance

(RTTNews) - Snack products and nuts company Diamond Foods Inc (DMND) on Thursday reported second-quarter net earnings of $11.2 million or $0.35 per share. This compares with a loss of $15.01 million or $0.68 per share last year, when the company incurred one-time losses from warrant and securities settlement liabilities.

The company's revenues for the quarter were higher at $229.7 million compared with $220.6 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.25 per share on revenues of $236.5 million for the quarter. Analysts' estimates typically exclude special items.

"We are encouraged with our earnings performance in the second quarter. Strong sales and margin improvement in the US drove these results, but our overall sales were muted by continued challenges in the UK," said CEO Brian Driscoll.

For the full year 2015, the company raised the lower of its adjusted earnings guidance by five cents and now expects that to be in the range of $0.95 to $1.10 per share. Analysts expect earnings of $1.03 per share.

"While the third quarter is seasonally our lowest for sales and earnings, and we face challenges including an intensely competitive promotional environment and the effects of a strong dollar, we believe that we are on track to achieve our updated annual EPS outlook," Driscoll said.