Dimond Food Shares Up 2%, Beats Q1 EPS Estimates

Diamond Foods, Inc. DMND reported financial results Monday for its fiscal 2015 first quarter ended October 31, 2014.

Net sales were $246.6 million, below estimates of $253.54 million and up 5.1 percent from the year-ago period.

Non-GAAP net income was $8.9 million and non-GAAP diluted EPS was $0.28, above estimates of $0.25 and up 33.3 percent from the same period in fiscal 2014.

GAAP net income was $7.7 million and GAAP diluted earnings per share was $0.24.

"We are pleased with our first quarter results, with market share gains in the U.S. on Kettle, Pop Secret and Diamond of California contributing to a solid 5.1 percent increase in net sales," said Brian J. Driscoll, President and CEO. "With these results and based on our outlook for the remainder of the year, we are reiterating our annual adjusted EBITDA and non-GAAP EPS guidance."

The Company reiterated its fiscal 2015 outlook for adjusted EBITDA of $115 million to $123 million and non-GAAP diluted EPS of $0.90 to $1.10, inline with estimates of $1.03. The Company's outlook includes the following expectations: input cost inflation of 3-4 percent, productivity improvements of 2 percent to 3 percent, a U.S./U.K. exchange rate of $1.60 per £1, a non-GAAP effective tax rate of between 26 percent to 28 percent, stock-based compensation of $9.7 million and 31.9 million fully diluted shares outstanding.

Diamond Foods, Inc. traded at $29.69 in the aftermarket, up 2.34 percent.