Conagra Brands Inc (NYSE: CAG)
Conagra Brands slightly missed the expectations of Wall Street analysts with its fiscal first quarter financial results early Thursday. The Chicago-based company reported net sales of $1.83 billion failing to beat estimates of 1.85 billion.
Shares of the packaged-food company took a dip of 6.1% in premarket trading after the results. The stock, which has dropped 9.74% this year, was down 6.60% to trade at $33.70 at 11:30 a.m. in New York.
CAG Earnings & Outlook
Conagra posted earnings of $178.2 million, or $0.45 per share, compared with $152.5 million, or $0.36 per share, in the earlier-year period. Adjusted for one-time items, earnings were $0.47 per share during the quarter. Net sales grew 1.7% to $1.83 billion, from $1.8 billion reported last year.
Analysts had projected adjusted earnings of $0.49 per share on net sales of $1.85 billion, according to figures compiled by Thompson Reuters. Conagra reported sales growth of 3.4% from its grocery and snacks business, as sales in its refrigerated and frozen unit jumped 3.2% from the prior-year quarter.
Looking ahead, the company expects earnings of between $0.57 and $0.60 per share for its fiscal second quarter. Analysts on average expect it to report adjusted earnings of $0.64 per share.
Conagra Brands CEO Comments
“Fiscal 2019 is off to a good start despite a continued, challenging inflationary environment. Our first quarter results were largely in-line with expectations as we delivered net sales growth in all four operating segments behind a strong innovation slate. We also earned increased distribution, particularly in our frozen business. We continue to stay focused on supporting our brands with robust marketing programs, including increased retailer investments, to drive brand saliency, enhanced distribution, and consumer trial of our products,” stated Sean Connolly, President and Chief Executive Officer of Conagra Brands.
Conagra Brands, Inc. Company Profile
Conagra Brands, Inc. engages in the manufacture and sale of processed and packaged foods. It operates through the following segments: Grocery and Snacks; Refrigerated and Frozen; International; Foodservice; and Commercial Foods.
The Grocery and Snacks segment includes branded, shelf stable food products sold in various retail channels in the United States. The Refrigerated and Frozen segment comprises branded, temperature controlled food products sold in various retail channels in the United States.
The International segment consists branded food products, in various temperature states, sold in various retail and foodservice channels outside of the United States.
The Foodservice segment focuses in the branded and customized food products, including meals, entrees, sauces, and a variety of custom-manufactured culinary products packaged for sale to restaurants and other foodservice establishments in the United States.
The Commercial Foods segment involves in the commercially branded and private label food and ingredients, which are sold to commercial, restaurant, foodservice, food manufacturing, and industrial customers. The company was founded by Alva Kinney and Frank Little in 1919 and is headquartered in Chicago, IL. – CNN Money