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. 

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

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.  

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.