Diamond Foods Reports EPS of $0.91 vs. $0.89; Revenues $257.60M vs. $265.13M

Diamond Foods, Inc.DMND today reported record sales growth and a more than doubling of earnings in its second quarter of fiscal 2011.

The company is increasing full-year non-GAAP earnings per share (EPS) guidance by $0.02 to a range of $2.45 to $2.51, while at the same time increasing its fiscal year advertising investment to a range of $43 million to $45 million. Advertising is being increased to provide support for distribution of new products, which gained widespread customer support in the past few months.

For the three months ended January 31, 2011, diluted EPS grew 67 percent to $0.87 compared to $0.52 for the prior year's comparable period. Excluding $0.9 million in integration costs related to the Kettle acquisition last March, non-GAAP EPS was up 90 percent to $0.91 compared to $0.48 for the prior year's quarter. Retail sales grew 63 percent to $215.6 million and snack sales increased 133 percent over last year due to both the addition of Kettle and strong organic growth in snack revenues.

Total revenue $257.60M