NEW YORK (TheStreet) -- Shares of ConAgra Foods, Inc. (CAG) closed up 4.59% to $33.48 on very heavy trading volume after the company said its sales stabilized in the latest quarter as it made headway in resuscitating troubled brands and in retooling its struggling business producing foods for supermarket labels, the Wall Street Journal reports.
The company has been battling weak consumer demand for many traditional packaged foods. ConAgra executives today highlighted several initiatives that they said are helping gain market share, the Journal said.
For ConAgra's fiscal first quarter ended Aug. 24, overall revenue totaled $3.7 billion, about flat with the $3.72 billion from a year ago.
ConAgra said its net profit in the latest quarter more than tripled, to $482.3 million from $144.3 million a year ago. But that was almost entirely due to a one-time gain from the splitting off of its flour milling operations into a joint venture called Ardent Mills, the Journal noted
Excluding one-time items, adjusted earnings edged up to 39 cents per share from 37 cents per share a year ago, beating analysts' expectations of 35 cents a share.
TheStreet Ratings team rates CONAGRA FOODS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONAGRA FOODS INC (CAG) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. We feel these strengths outweigh the fact that the company has had sub par growth in net income."