What Does Wall Street See for Diamond Foods's Q1?

Seth Jayson, The Motley Fool
Updated

Diamond Foods (NAS: DMND) is expected to report Q1 earnings around Sep. 15. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Diamond Foods's revenues will increase 5.4% and EPS will expand 12.3%.

The average estimate for revenue is $266.2 million. On the bottom line, the average EPS estimate is $0.73.


Revenue details
 Last quarter, Diamond Foods tallied revenue of $232.8 million. GAAP reported sales were 32% higher than the prior-year quarter's $176.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $0.52. GAAP EPS of $0.37 for Q4 were 23% higher than the prior-year quarter's $0.30 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 24.5%, 30 basis points worse than the prior-year quarter. Operating margin was 9.2%, 20 basis points worse than the prior-year quarter. Net margin was 3.7%, 10 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.05 billion. The average EPS estimate is $2.04.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 238 members out of 272 rating the stock outperform, and 34 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Diamond Foods a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Diamond Foods is hold, with an average price target of $78.64.

The article What Does Wall Street See for Diamond Foods's Q1? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement