This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ConAgra Beats, Boosts Outlook

ConAgra's (CAG - Get Report) second-quarter earnings handily topped estimates, with cost cuts helping to boost profits amid a modest increase in sales.

The stronger-than-expected results led the packaged food maker to increase its profit forecast for the full year.

For the quarter ended Nov. 26, ConAgra earned $219.6 million, or 43 cents a share, up from $152.5 million, or 29 cents a share, a year earlier. The latest quarter's results included several one-time items that had a net effect of adding 3 cents a share to earnings.

Excluding items, ConAgra earned 40 cents a share. Analysts polled by Thomson First Call had an average estimate for a profit of 33 cents a share.

The company, whose brands include Chef Boyardee, Orville Redenbacher's and Hebrew National, said sales climbed 2.9% to $3.09 billion from $3.00 billion. Wall Street expected sales of $3.02 billion.

ConAgra attributed the improved results to margin expansion. The company has been seeking to cut costs and make divestitures as part of a turnaround plan to focus on its priority brands.

"Our progress puts us on track for a better EPS performance this year than we originally expected, and is providing the fuel that will allow us to make increased marketing and innovation investments," said CEO Gary Rodkin in a press release. "Although we expect productivity gains to be the main driver of solid earnings performance throughout the remainder of fiscal 2007, our marketing investments will help us deliver future bottom-line improvements through top-line growth in key brands."

ConAgra now expects fiscal 2007 earnings of $1.28 to $1.44 a share, excluding certain items. Previously, the company forecast earnings of $1.15 to $1.20 a share. Analysts, on average, predict earnings of $1.25 a share.

Shares of ConAgra were up $1.50, or 5.6%, to $28.35 in premarket trading.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CAG $37.52 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs