Bear of the Day: Diamond Foods - Bear of the Day
January 02 2013 - 7:01PM
Zacks
We have downgraded our long-term recommendation on
Diamond
Foods (DMND) to Underperform following its dismal first quarter
fiscal 2013 results. Its adjusted earnings of $0.23 per share
plunged 67.6% from the year-ago quarter, primarily due to weak
top-line performance and increased operating expenses as a
percentage of sales.
Total sales dipped 10.1% year over year to $258.5 million, and
missed the Zacks Consensus Estimate of $274.0 million. The
company's performance may also get a hit due to difficulty on its
part to secure walnut supplies and repair its ties with
growers.
Otherwise, a highly leveraged balance sheet may stop it from
taking strategic initiatives. Further, continued macroeconomic
headwinds, intense competition, product recalls and fluctuations in
raw material prices may undermine the company's future growth
prospects and sustainability.
DIAMOND FOODS (DMND): Free Stock Analysis Report
To read this article on Zacks.com click here.
(MM) (NASDAQ:DMND)
Historical Stock Chart
From May 2024 to Jun 2024
(MM) (NASDAQ:DMND)
Historical Stock Chart
From Jun 2023 to Jun 2024