Diamond Foods to Report Fiscal 2016 First Quarter Results
Earnings Preview: Diamond Foods' Upcoming Fiscal 1Q16 Results
Expected fiscal 1Q16 earnings
Diamond Foods (DMND) will report its first quarter earnings for fiscal 2016 in the second week of December 2015 between December 7–11. The company is based in San Francisco, California, and along with its segments, processes, markets, and distributes snack products, as well as culinary in-shell and ingredient nuts worldwide. Its brands include Diamond of California, Kettle Brand and Kettle Chips, Emerald, and Pop Secret. It’s part of the processed and packaged food industry.
Stock performance
The stock fell by ~3% after the fourth quarter earnings were released. It closed at $31.3 on September 29. The stock has been trading in the range of $30 to $41 since then. However, on October 28, the stock rose almost 9% after the announcement of a definitive agreement where Snyder’s-Lance will acquire all outstanding shares of Diamond Foods. The stock rose to 42% this year owing to strong earnings growth that was influenced by year-over-year improvement in gross margins in spite of falling revenue.
Diamond Foods’ main competitors in the processed and packaged goods industry are Mondelez (MDLZ), B&G Foods (BGS), and Campbell Soup (CPB). Mondelez, B&G Foods, and Campbell closed at $42.6, $36.2, and $52.4, respectively on December 3.
The PowerShares DWA Consumer Staples Momentum Portfolio (PSL) invests 1.5% of its portfolio in the DMND stock. It closed at $56.5 on December 3. The ETF’s year-to-date returns are 11.1% while DMND’s returns equaled 41.1% as of December 3. The iShares S&P Small Cap 600 Growth ETF (IJT) also invests 0.17% in the DMND stock.
Series overview
In the next parts of the series, we’ll talk about the moving averages of Diamond Foods and its peers, the company’s performance in its last reported fourth quarter of fiscal 2015, its outlook for fiscal 2016, and the details of its acquisition by Snyder’s-Lance.
Browse this series on Market Realist:
