Top Performer for Monday

Consumers really chowed down on nuts and popcorn during Diamond Foods, Inc.'s (DMND - Analyst Report) fiscal second quarter, helping the company put together a strong performance while pushing earnings estimates higher.

Over the past 2 months, analysts' expectations for this fiscal year (ending July 2009) and next fiscal year (ending July 2010) are up 4.7% and 4.3%, respectively.

In addition, profit is currently expected to grow approximately 25% next fiscal year over this fiscal year.

DMND's strong fiscal second-quarter results were helpful, but another big reason for the raised earnings estimate revisions was its outlook for fiscal 2009. The company now expects EPS between $1.27 and $1.34, which is up 2 cents from its previous guidance of $1.25 to $1.32.

Net sales are expected between $535 million and $565 million.

For the quarter, earnings per share reached 37 cents, compared to 17 cents a year earlier. The result continued DMND's impressive record of better-than-expected quarterly profit, as it accounted for a surprise of more than 23% ahead of the consensus. The past 4 quarters have seen an average surprise of about 17%.

Net sales reached $150.6 million, or 13% better than the year-ago result of $133.8 million. Snack sales surged 152%, due to Emerald and Pop Secret.

The company stated that its strategy of investing in its brands while lowering its cost structure is enabling DMND to deliver greater value to retail partners and consumers.

DMND is 1 of 4 companies from the Food - Misc/Diversified industry on today's Zacks #1 Rank List, which includes 196 stocks. The other 3 companies are American Italian Pasta Co. (AIPC - Snapshot Report), Lancaster Colony Corp. (LANC - Snapshot Report) and Treehouse Foods, Inc. (THS - Snapshot Report).