NEW YORK (TheStreet) -- ConAgra Foods (CAG) - Get Report  stock is rallying 1.49% to $41.60 in pre-market trading on Tuesday following the food producer's second quarter 2016 earnings results reported earlier this morning. 

Profit for the latest quarter came in at 71 cents a share, beating Wall Street's forecasts of 60 cents a share.

However, sales of $3.09 billion fell short of estimates of $3.34 billion.

During the same period the year prior, the company earned 61 cents a share on $4.15 billion in revenue. 

Despite weak demand and the stronger dollar negatively impacting sales, the company's consumer foods segment posted double-digit operating profit growth, benefiting from higher productivity and lower commodity input costs. 

"In our branded business we achieved our objective of delivering strong margin expansion by continuing to focus on price/mix, productivity, and portfolio segmentation," CEO Sean Connolly stated. "At Lamb Weston, we continued to generate good growth, particularly in our international business."

During the recent quarter, the company announced plans to separate into two independent companies--ConAgra Brands and Lamb Western, dividing its frozen potato business from its consumer brands unit. The split is projected to be completed by the fall of 2016.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate CONAGRA FOODS INC as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

You can view the full analysis from the report here: CAG

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