DA Davidson Downgrades Diamond Foods (DMND) to Neutral
Tweet
Share
E-mailGet Alerts DMND Hot Sheet
Price: $37.56 --0%
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 2
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 2
Join SI Premium – FREE
DA Davidson downgraded Diamond Foods (NASDAQ: DMND) from Buy to Neutral with a price target of $17.00 (from $20.00), calling the quarter "messy."
Analyst Tim Ramey notes Q2 operating EPS of $0.05 was worse than their estimate of
$0.23, and a penny below the wide-ranging Street consensus of $0.06.
Ramey said a move by the company to move away from the useful "Snacks" segment and put Emerald snacks into a newly created "Nuts" segment, reduces clarity. However, management only provided FY13 YTD segment data so it will be impossible to use the new segments until the remainder of the FY is reported since we don’t know the FY12
base, he notes. "The move was disappointing given the reduction in clarity," according to the analyst.
The outlook also remains less clear as management expects net sales in the 2H13 to
be down more on a year-over-year basis as compared to the 1H.
The firm cut FY13 and FY14 EPS estimates to $0.37 and $0.85, respectively (down from $0.61 and $1.45, respectively).
For an analyst ratings summary and ratings history on Diamond Foods click here. For more ratings news on Diamond Foods click here.
Shares of Diamond Foods closed at $17.60 yesterday.
Analyst Tim Ramey notes Q2 operating EPS of $0.05 was worse than their estimate of
$0.23, and a penny below the wide-ranging Street consensus of $0.06.
Ramey said a move by the company to move away from the useful "Snacks" segment and put Emerald snacks into a newly created "Nuts" segment, reduces clarity. However, management only provided FY13 YTD segment data so it will be impossible to use the new segments until the remainder of the FY is reported since we don’t know the FY12
base, he notes. "The move was disappointing given the reduction in clarity," according to the analyst.
The outlook also remains less clear as management expects net sales in the 2H13 to
be down more on a year-over-year basis as compared to the 1H.
The firm cut FY13 and FY14 EPS estimates to $0.37 and $0.85, respectively (down from $0.61 and $1.45, respectively).
For an analyst ratings summary and ratings history on Diamond Foods click here. For more ratings news on Diamond Foods click here.
Shares of Diamond Foods closed at $17.60 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- HSBC Downgrades HK Electric (2638:HK) (HKCVF) to Hold
- JPMorgan Starts Kanzhun Ltd (2076:HK) at Overweight
- Tata Consultancy Services Ltd. (TCS:IN) PT Lowered to INR2,550 at BNP Paribas Exane
Create E-mail Alert Related Categories
Analyst EPS Change, Analyst EPS View, Analyst PT Change, DowngradesRelated Entities
D.A. DavidsonSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
