Why Diamond Foods, Inc. Stock Jumped 10% in June
What:Shares ofDiamond Foods gained 10% in June,following a strong earnings report at the beginning of the month.
So what:The maker of nuts and snack brands such as Kettle Chips released a June 4th earnings report that led to a 7% jump in its share price as the company delivered a huge earnings beat, posting a per-share profit of $0.23 against estimates of $0.15. It was the fourth consecutive time the company had topped bottom-line estimates.
Sales actually fell in the quarter, dipping 2.5% to $186.1 million, but management was able to more than double adjusted earnings as gross margin improved nearly five percentage points to 28.5%. Management explained the decline in sales as strategic as the company exited lower-margin SKUs.The company also raised its full-year guidance slightly following the report.
The article Why Diamond Foods, Inc. Stock Jumped 10% in June originally appeared on Fool.com.
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