The packaged food company reported earnings of 51 cents per share in the quarter ended Feb. 24, topping expectations of 49 cents. While revenue of $2.71 billion rose 35.7% year over year it came in below estimates of $2.75 billion.
The company said that it raised prices on its products in order to account for higher transportation and commodity costs. The move helped bolster the company's bottom line.
"The integration of Pinnacle Foods, and the reinvigoration of its innovation pipeline, remain squarely on-track. We are aggressively applying our proven 'Conagra Way' to address the executional challenges in the Birds Eye, Duncan Hines and Wish-Bone businesses. While it will take some time to return these Pinnacle businesses to growth, we are confident that we have identified the issues and have the right action plans in place to improve the performance of these terrific brands," CEO Sean Connolly said.
The company reported a 2.9% increase in net sales to $863 million for its grocery and snacks segment, while net sales from its refrigerated and frozen segment rose 3.3% to $711 million.
The company's international segment was a drag on the growth story, with net sales falling 11.4% year over year to $198 million.
The stock was up 11.8% to $25.59 on Thursday.
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