US: Diamond posts Q2 loss but shares rise
Diamond Foods has posted a loss for Q2
Shares in Diamond Foods rose despite the US snack maker posting a second-quarter loss after the company's sales and underlying earnings beat analyst expectations.
The owner of Kettle Chips incurred a net loss of $15.1m for the three months to the end of January, compared to net income of $10.1m a year earlier. The loss was due to a $7m warrant liability charge related to last year's alleged accounting scandal.
Diamond also booked an $8.7m charge for the mark-to-market adjustment related to shares issuable in connection with the settlement of claims against the company.
However, the company reported earnings per share of $0.09 compared to Wall Street estimates of $0.08, according to BB&T Capital Markets analyst Brett Hundley.
Net sales for the quarter remained flat at $220.5m, "outpacing" consensus, Hundley added.
Income from operations dropped from $24.6m a year ago to $2m.
Excluding these charges, non-GAAP net income for the second quarter was $2.6m, up on last year's $1.1m figure.
Adjusted EBITDA, after reversing the charges associated with the lawsuit, SG&A costs and depreciation and amortization expenses, was up 24.4% at $28.5m.
For the first half of the year, Diamond posted a net loss of $57.2m. Non-GAAP net income, however, was up on the same period last year at $6.2m.
Diamond posted a loss from operations of $24.2m, versus income of $28.4m a year ago.
However, adjusted EBITDA was up at $57.6m, compared with $53.9m.
Sales fell 5% to $455.2m as nut sales slid 14%.
Shares in Diamond, which posted the results after the closing bell in New York, were up 5.84% at $31.70 in after-hours trading.
Hundley added: "The real story was the performance of its top-line; led by an impressive 11% growth in its Snacks division, revenues were in-line with last year. We had not expected this type of performance to arrive for another quarter."
Click here for the full results.
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
US snack maker Diamond Foods has decided to take its Kettle brand into its domestic popcorn sector....
Savory Snacks in the United States industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2007-2011, and forecast to...
The NAFTA Savory Snacks industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2007-11, and forecast to 2016). The p...
The G8 Savory Snacks industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2007-11, and forecast to 2016). The prof...
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global savory snacks market during April 2014. S...
- BRICs and beyond: Fonterra, Beingmate partnership
- On the money: Mengniu hones in on "star" brands
- just-food interview: Agropur CEO Robert Coallier
- Comment: Competition to rise on whey investments
- Consuming issues: The hunger-obesity paradox
- Valio lactose-free trucks stopped at Russia border
- UK firm Pasta Reale enters administration
- H1 profits down at dairy group FrieslandCampina
- Valio targets China with EUR70m whey inve
- Fonterra, Beingmate launch infant formula JV