Nuts maker Diamond Foods, Inc. (DMND) said late Wednesday that its fourth quarter profit jumped 60% from last year, helped by the integration of recently-acquired Pop Secret popcorn.
The San Francisco-based company reported fiscal fourth quarter net income of $4.2 million, or 25 cents per share, compared with $2.6 million, or 16 cents per share, in the year-ago period.
Revenue edged up less than 1% from last year to $113.8 million.
On average, Wall Street analysts expected a lower profit of 18 cents per share, on slightly higher revenue of $113.9 million.
As for the full fiscal year, Diamond's profit jumped 61% to $23.7 million, or $1.44 per share, or $1.47 per share on an adjusted basis. Full-year revenue rose 7.4% percent to $570.9 million.
Looking ahead, the company boosted its full-year 2010 profit forecast. It now expects earnings of $1.70 to $1.80 per share, up from a prior outlook for $1.55 to $1.70 per share.
Diamond Foods shares fell 15 cents, or -0.5%, in premarket trading Thursday.
The Bottom Line
We have avoided shares of DMND since our early June coverage began last year, when the stock was trading at $21.61. The stock has technical support in the $27-$28 price area. If the shares can continue the recent run, there is limited overhead as the stock is trading at all-time highs. We would remain on the sidelines for now, but we are watching the stock closely for a possible upgrade.
Diamond Foods, Inc. (DMND) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
