NEW YORK (TheStreet) -- ConAgra Foods (CAG) will report fourth-quarter fiscal 2015 earnings results Tuesday before the opening bell. Known for popular brands like Orville Redenbacher's, Hunt's, Chef Boyardee, and Slim Jim, ConAgra has been feeding people for almost a century.
But feeding profit-hungry investors has been a challenge, prompting activist investor Barry Rosenstein, hedge fund manager at Jana Partners, to take a new 7.2% stake in ConAgra stock. And if you thought Jana took the position to remain quiet, think again. On the news, shares of the Omaha, Nebraska-based company spiked more than 7%. It would be a smart move to ride Jana's coatails. But ConAgra has not performed as poorly as Jana claims.
Jana wasted no time making demands, already insisting on a strategic review and capital allocation changes at ConAgra. More specifically, Jana doesn't believe ConAgra is in the right hands, demanding to examine the company's costs, corporate structure and overall operational performance.
Displeased with its results since ConAgra completed its $6.7 billion acquisition of Ralcorp in 2013, Jana has threatened to install three new directors to the company's board. In March, ConAgra took a write down of $1.3 billion related to the Ralcorp deal.
Accordingly, ConAgra then lowered its full-year 2015 earnings per share projections, calling for earnings of between $2.13 and $2.18 a share. Assuming earnings do come at the mid-range of its guidance, or about $2.15 a share, this would translate to a year-over-year decline of 1%, down from $2.17 a share earned a year ago.