Diamond Foods Inc. (NASDAQ:DMND)

Previously we said that fiscal 2010 combined third and fourth fiscal quarter non-GAAP EPS was expected to be $0.47 - $0.50. With this quarter's strong EPS results of $0.30, we now expect to generate second half non-GAAP EPS of between $0.55 and $0.57, implying the fourth fiscal quarter will be in the range of $0.25 to $0.27. This implies net income growth of between 30 percent and 40 percent over the comparable prior year period.

We are also increasing our fiscal 2010 guidance on advertising spending from $29-34 million to $32 million to $35 million in support of our snack portfolio. 

For Fiscal 2011, we are now raising our EPS guidance by $0.10 per share to a range from $2.35 to $2.45. This implies net income growth of between 49 percent and 53 percent over fiscal 2010's guidance.

"As our retail growth drives economies of scale and we continue to improve the company's cost structure, it enables us to invest heavily in our brands and deliver greater value to our retail partners and consumers," said Michael J. Mendes, President and CEO. "As a result, we achieved strong sales and profit growth which exceeded expectations for the third quarter. Today, in reflection of these results, we are increasing full-year guidance that projects non-GAAP earnings will expand 44-49% as compared to last year."

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b Non-GAAP EPS figures generally exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

Guidance Report:

Speaking to analysts and investors at the NASDAQ Market Site in New York City, President and CEO Michael J. Mendes said, “Based on the solid performance of our Diamond culinary nut business and our snack portfolio, which consists of Emerald snack nuts and Pop Secret microwave popcorn, we now expect to achieve EPS growth of between 37 to 45 percent for the fiscal year. We are pleased by the complimentary nature of our expanded snack portfolio, and believe we will benefit from the synergy of the larger business in the future.”

Source: Business Wire (January 27, 2009)