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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

ConAgra Surges as Earnings Beat Estimates

NEW YORK (TheStreet) - ConAgra (CAG) surged Thursday as the Omaha-based food company reported an earnings increase that exceeded expectations.

Shares gained 5.1% to close at $35.04.

ConAgra said that for its fiscal year ended May 26, net income from continuing operations increased 65% to $1.85 billion compared to $1.12 billion a year ago quarter. CEO Gary Rodkin expects earnings to be greater than $3.00 per share by 2017.

ConAgra's consumer foods division expanded this quarter, as Banquet, Hebrew National, PAM and more grew by 7% this quarter, to $2.3 billion in sales. Operating profits rose 8% to $291 million over the past year, up from $270 million. "The comparable profit growth reflects the segment's overall sales growth, strong cost savings which more than offset minimal input cost inflation, increased incentives, and an increase in marketing investment," said the company in a statement.

The commercial division, which deals with seasonings, flavors, and grain and potato products posted 4% growth and $1.3 billion in sales. Operating profits rose 13% this year to $156 million. Its Lamb Weston potato operation faced obstacles in soft Asian markets but still saw strong sales. ConAgra said that it saw the most growth in their flour milling operations that moved increased volumes. The company will expand this operation with Ardent Mills in fiscal 2014.

ConAgra acquired Ralcorp Holdings, a private food producer, for $4.95 billion earlier this year. Ralcorp brought in $962 million in sales revenue in the fourth quarter. Rodkin said "an increase in expected synergies from the recent Ralcorp transaction" will perpetuate the expansion ConAgra experienced this year.

ConAgra paid $104 million dollars in dividends in the fourth quarter and contributed $400 million to debt reduction, working towards $1.5 billion as part of refinancing efforts.

ConAgra shares have gained 20% year-to-date.

Written by Robert Arenella in New York

>To contact the writer of this article, click here: Robert Arenella.

Stock quotes in this article: CAG 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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.
DOW 16,262.56 +89.32 0.55%
S&P 500 1,842.98 +12.37 0.68%
NASDAQ 4,034.1610 +11.4670 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs