Conagra Brands Inc (NYSE: CAG)
Conagra Brands Inc. shares plummeted early Thursday after the company announced mixed fiscal second-quarter financial results. The stock was down 12.10% to $25.57 a share as of 10:55 a.m. GMT-5.
Shares of the Chicago-based food packaging company have lost more than 22% since the beginning of the year.
CAG Earnings & Outlook
For the second quarter ended November 25, 2018, Conagra Brands posted net sales increase of 9.7% to $2.38 billion, partly aided by the $10.9 billion acquisition of Pinnacle Foods. Analysts were expecting the company to report net sales of $2.41 billion, according to figures compiled by FactSet.
The owner of Birds Eye, Slim Jim, and Healthy Choice food brands net income of $131.6 million, or $0.31 per share, compared with $223.5 million, or $0.54 per share in the comparable period last year. Earnings, adjusted for one-time gains and costs, were $0.67 per share, surpassing expectations of $0.56 per share.
Refrigerated and Frozen segment recorded sales of $771 million, an increase of 1.7% from the same period last year, but below the consensus of $774.7 million. Meanwhile, sales in the Grocery and Snacks division totaled to $900 million, missing estimates of $904.6 million by FactSet.
Looking ahead, the company views adjusted earnings of between $2.03 to $2.08 per share for fiscal 2019. Analysts forecast adjusted earnings of $2.12 per share. Conagra sees full-year net sales growth in the range of 22% to 23%.
Conagra Brands CEO Comments
Sean Connolly, chief executive officer of Conagra Brands, commented, “For the Legacy Conagra Brands business, our second quarter results reflect continued momentum. Net sales were largely in line with our expectations. Our Refrigerated & Frozen and Grocery & Snacks segments continued to gain share with consistent, accelerating consumption trends behind strong innovation, particularly in our frozen and snacks & sweet treats businesses. Accordingly, we are reaffirming our fiscal 2019 net sales and margin guidance for Legacy Conagra Brands.”
Conagra Brands, Inc. Profile
Conagra Brands, Inc., together with its subsidiaries, operates as a food company in North America. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment primarily offers shelf stable food products in various retail channels in the United States.
The Refrigerated & Frozen segment provides temperature controlled food products in various retail channels in the United States. The International reporting segment offers food products in various temperature states in retail and foodservice channels outside of the United States.
The Foodservice segment offers food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for sale to restaurants and other foodservice establishments in the United States. Conagra Brands, Inc. was founded in 1919 and is headquartered in Chicago, Illinois. – Yahoo Finance