Diamond Foods, Inc.
), a specialty food company focused on processing, marketing and
distribution of snack products and culinary, ingredient and
in-shell nuts, is slated to report its third-quarter fiscal 2014
results on Jun 5, 2014. In the last quarter, it posted a positive
surprise of 12.5%. Let's see how things are shaping up for this
Factors Influencing the Quarter
Diamond Foods is progressing well with its planned cost
containment endeavors and operational initiatives, which has helped
it to post better-than-expected second-quarter fiscal 2014
bottom-line results. Moreover, we expect the company's future
results to exhibit more sustained growth of its brands due to
product innovation and differentiation as well as an improved cost
structure. However, we cannot ignore the near-term headwinds such
as challenges related to procuring walnut supplies and mending ties
with growers. Furthermore, we remain skeptical about the company's
performance going forward due to its highly leveraged balance
Our proven model does not conclusively show that Diamond Foods
is likely to beat earnings estimates this quarter. This is because
a stock needs to have both a positive
and a Zacks Rank #1, #2 or #3 to surpass earnings estimates.
However, this is not the case here, as you will see below:
Zero Zacks ESP:
ESP (Expected Surprise Prediction) for Diamond Foods is 0.00%. This
is because the Most Accurate estimate stands at 16 cents per share,
which is in line with the Zacks Consensus Estimate.
Zacks Rank #4 (Sell):
Diamond Foods' Zacks Rank #4 when combined with a zero ESP makes
surprise prediction difficult. We caution against stocks with a
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements:
The Cooper Companies Inc.
) has an Earnings ESP of +0.62% and a Zacks Rank #2 (Buy).
HD Supply Holdings, Inc.
) Earnings ESP stands at +11.77% and it carries a Zacks Rank #3
Joy Global, Inc.
) with an Earnings ESP of +4.29% holds a Zacks Rank #3.
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DIAMOND FOODS (DMND): Free Stock Analysis
COOPER COS (COO): Free Stock Analysis Report
JOY GLOBAL INC (JOY): Free Stock Analysis
HD SUPPLY HLDGS (HDS): Free Stock Analysis
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