Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Diamond Foods, Inc. (NASDAQ:DMND) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.
The controversy that ensnared Diamond Foods, Inc. (NASDAQ:DMND) in late 2011 and early 2012 cost it what could have been a game-changing acquisition in the snack-foods space. Since then, the company has struggled to mount a comeback. Let's take an early look at what's been happening with Diamond Foods over the past quarter, and what we're likely to see in its quarterly report on Monday.
Stats on Diamond Foods, Inc. (NASDAQ:DMND)
|Analyst EPS Estimate||$0.06|
|Revenue Estimate||$239 million|
|Change From Year-Ago Revenue||(8.9%)|
|Earnings Beats in Past 4 Quarters||2|
Will Diamond Foods, Inc. (NASDAQ:DMND) leave investors hungry this quarter? Analysts haven't been very optimistic about Diamond Foods' prospects over the past few months, as they've slashed their earnings estimates for the just-ended quarter in half, and lowered their calls for the full 2013 fiscal year by $0.04 per share. The stock, though, has bounced back substantially after apparently hitting bottom, up 16% since early December.
One big cause for analyst uncertainty has been the fact that Diamond had to restate all its earnings over the past two years in light of its ill-fated decision to use a controversial method of accounting for certain payments to farmers. In the aftermath of those restatements, Diamond hasn't regained Wall Street's confidence, especially given the huge consequences of its failure, which resulted in Diamond having to cancel its agreement to purchase the Pringles snack line from The Procter & Gamble Company (NYSE:PG).
But last month, investor interest in Diamond has heated up, with BlackRock, Inc. (NYSE:BLK) having disclosed a nearly 8% stake in the snack-food maker. Blackrock's move doesn't appear to have activist intentions, and investors are taking the move as a sign of support for new CEO Brian Driscoll, who has experience handling snack foods from his time at Hostess Brands.