Stock price performance
On September 29, 2015, Diamond Foods (DMND) reported its financial results for the fourth quarter and fiscal year ending July 31, 2015. The stock trades on the NASDAQ exchange. The stock fell by ~6% after the earnings were released. It closed at $31.34 on September 29. The stock has been trading in the range of $30–$34 this month.
Key highlights in 4Q15
The following highlights are for 4Q15.
- The net sales were recorded at $201.8 million—down by $17.3 million or 7.90%.
- The Snacks segment’s net sales were reported at $129.8 million—down by 0.20%.
- The Nuts segment’s net sales were reported $72 million—down by 19%.
- The gross margin was recorded at 27%—compared to 22.50% in 4Q14.
- The Non-GAAP (generally accepted accounting principles) net income was recorded at $7.2 million. The non-GAAP diluted EPS (earnings per share) was recorded at $0.23—up by 21.10%.
- The adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) was recorded at $29.3 million—up by 22.40%.
Highlights in fiscal 2015
- The total net sales were reported $864.2 million—essentially flat.
- The Snacks segment’s net sales were recorded at $480.7 million—up by 1.50%.
- The Nuts segment’s net sales were recorded $383.4 million—down by 2.10%
- The gross margin was recorded at 26.40%—compared to 24.10% in fiscal 2014.
- The non-GAAP net income was at $34.7 million. The non-GAAP diluted EPS was at $1.10—up by 71.90%.
- The adjusted EBITDA was at $123.8 million—up by 17.70%.
Brian J. Driscoll is the company’s president and CEO. He stated that “We are encouraged by our fourth quarter earnings performance, which was fueled by strong gross margin improvement. We are also pleased with the continued growth of Kettle in North America, Pop Secret market share gains, and the early signs of success in the Emerald transition to stand-up bags. Our strategic decision to exit low margin nut-SKUs impacted net sales negatively, which were also adversely affected by foreign exchange. Looking ahead, we continue to believe we have a solid foundation for future growth across our portfolio.”
Diamond Foods’ main competitors in the processed and packaged goods industry are Mondelez (MDLZ), B&G Foods (BGS), and Campbell Soup (CPB). Mondelez trades on the NASDAQ exchange. B&G Foods and Campbell Soup trade on the NYSE. They closed at $40.81, $35.60, and $50.59 on September 29, 2015, respectively. The Vanguard Consumer Staples ETF (VDC) invests 0.08% and the Fidelity MSCI Consumer Staples Index ETF (FSTA) invests 0.05% of its portfolio in Diamond Foods.