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DMND: Diamond Foods Rises on Earnings Beat

Gross margins climbed during the quarter


Diamond Foods LogoOn Tuesday, Diamond Foods (DMND) reported quarterly earnings and sales that topped Wall Street expectations, sending DMND stock up more than 8% in Wednesday morning trading.

DMND stock climbed after the snack food-maker posted a fiscal second-quarter loss of $15.1 million. That compared to a profit of $10.1 million in the year-ago period. Adjusted EPS came in at 9 cents per DMND share, up from 5 cents in the prior-year period, and surpassing the earnings of 8 cents a share analysts were looking for, the Wall Street Journal notes.

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During the quarter, DMND said it generated revenue of $220.6 million, up just 0.1% from the year-ago period. But that was still higher than the revenue of $217 million that analysts had estimated.

DMND said that its gross margin increased from 22.9% to 25.4%. DMND CEO Brian Driscoll indicated that the company was facing higher tree-nut costs and that the nut business could see increasing hurdles later this year.

On Tuesday, DMND stock closed at $29.95 per share. Over the past year, DMND stock has gained more than 80%.

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