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Diamond Foods (DMND) -18.7% AH after restating results for FY10 and FY11, and reporting results...

Diamond Foods (DMND) -18.7% AH after restating results for FY10 and FY11, and reporting results for the first 3 quarters of FY12 (ended in July). Sales for the first 3 quarters totaled $757.4M (+3.5% Y/Y) and EPS amounted to $0.53, down from a restated $1.54 for the year-ago period. Gross margin fell 480 bps Y/Y to 18.1% thanks to (surprise, surprise) a drop in walnut crop deliveries and higher walnut costs. Diamond expects to report FY12 sales of $950M-$975M vs. FY11's $966.7M. Also, two board members are stepping down, and walnut grower Bill Tos is joining.
Comments (3)
  • DMND is a case of confusing indicators. The brands have value.
    The management seems to have been reformed. Question: how can the brands be converted to net income that supports the stock price.
    In light of all that has happened to DMND, it is difficult for the average investor to estimate where the variables will end up. At this moment, it may be best to stay away.
    14 Nov 2012, 05:58 PM Reply Like
  • Not as much value as ko or krft. Dmnd is newer and they maintained profitability by screwing over their suppliers.

     

    Not sure how things improve, going forward
    14 Nov 2012, 08:56 PM Reply Like
  • Emotion aside, y/y sales increase, new board, new philosophy... This will be old news soon, and when the hump of 3rd party financing shakes out, DMND will be in great shape to be purchased. Work on what the premium should be.
    15 Nov 2012, 11:35 AM Reply Like
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