Amira shares jump on 2Q results
Amira Nature Foods Ltd.'s shares jumped Wednesday after the food company reported better-than-expected second-quarter results.
THE SPARK: Amira reported late Tuesday that it earned 9 cents per share for the quarter. That is up from 2 cents per share earned in the prior year and above the 6 cents per share that analysts polled by FactSet had anticipated. Its revenue increased nearly 29 percent to $79.4 million from $61.7 million. Analysts had forecast revenue of $64.6 million.
Amira leaders said the company remains on track to meet its full-year goals.
THE BIG PICTURE: Amira, based in Dubai, is a leading global seller of Indian specialty rice. The company went public in October, listing its shares on the New York Stock Exchange.
THE ANALYSIS: KeyBanc Capital Markets analyst Akshay Jagdale said that it was an impressive quarter from Amira. The analyst was particularly impressed by the company's roughly 50 percent volume growth its core basmati rice business.
Jagdale said that the company's shares are trading lower than its peers and as a result, he reiterated a "Buy" rating on the stock. He has a $12 price target on Amira's shares.
SHARE ACTION: Shares jumped 61 cents, nearly 8 percent, to $8.25 by early afternoon. Its shares priced at $10 per share when the company went public.