Call it a Presidents Day profit warning from a food producer that didn't end up sitting so well with investors.
Conagra Brands (CAG) - Get Free Report stock fell nearly 8% after the maker of staple food brands such as Hunt's and Chef Boyardee saw weak orders from restaurants in the holiday season and soft retail sales in January - spurring it to cut its fiscal full-year profit forecast.
The unexpected drop for the likes of Hunt's tomato paste and Chef Boyardee canned ravioli prompted the Chicago-based company to cut its full-year adjusted per-share earnings forecast by 4% to $2.04 a share, below the $2.11 a share analysts polled by FactSet had been expecting.
Sales for fiscal 2020 are now seen rising by approximately 10% to $10.52 billion vs. previous guidance of 12.7% growth and sales of $10.75 billion. Organic net sales should rise by roughly 0.3%, down from 1.3%, the company said.
Management had expected tough year-over-year comparisons in its fiscal third quarter, which ends on Feb. 23, but the difficulties in certain categories ran deeper than anticipated, CEO Sean Connolly said in a statement issued on Presidents Day when stock markets in the U.S. were closed.
“While we planned for tougher year-over-year comparable results in the third quarter, we did not plan for this level of category softness,” CEO Sean Connolly said in a statement.
Catch up on the Latest Videos on TheStreet!
- Cure for Coronavirus: Are We There Yet?
- Jim Cramer on Nvidia's Earnings
- Jim Cramer Puts Tom Brady, Ryan Tannehill and Philip Rivers Against Stocks
- 5 Stocks (And Some Extras) to Add to Your Portfolio
- TheStreet Explains: How to Find a Good Savings Account
- Retirement Daily: What Social Security Customer Service Reps Can and Can't Tell You
- Free Webinar: Webinar - Expert Advice on FX/Metals Trading by CME Group