Shares of Conagra Brands (CAG - Get Report) jumped more than 6% on Wednesday after the company reaffirmed its guidance to Wall Street analysts and investors, and said it expects to see positive growth and margin expansion.
In a presentation to investors filed with regulators, Conagra CEO Sean Connolly pointed to the success of the company's Lamb Weston spinoff, its integration of Pinnacle Foods, and the recalibration of several of its iconic brands including Reddi-wip, Orville Redenbacher, Slim Jim and Chef Boy-Ar-Dee as reasons behind the company's optimistic forecasts.
Pinnacle Foods oversees three key brands: Birds Eye, Duncan Hines and Wish Bone.
From a numbers perspective, the company reiterated its guidance of per-share earnings of between $2.03 and $2.08 for its fiscal year, between $2.10 and $2.20 a share for fiscal 2020 and between $2.70 and $2.80 a share for fiscal 2022, according to the presentation.
It's a pastability that you're the ravi-only one for me! Happy #ValentinesDay! ����❤️
Make sure to share this with the chef in your life! �� pic.twitter.com/mMhYsWymgO— Chef Boyardee (@ChefBoyardee) February 14, 2019
Connolly also highlighted the company's longer-term goal of reducing debt, maintaining its current credit rating and also maintaining or expanding on its current annualized dividend.
Conagra last month reported better-than-expected fiscal third-quarter earnings, driven in large part by the reinvigoration of its pipeline. The company also said that it raised prices on its products in order to account for higher transportation and commodity costs - a move that helped bolster its bottom line.
Conagra stock was up $1.80 at $29.34 in trading Wednesday on the New York Stock Exchange.