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Conagra Stock Climbs on a Strong Forecast Following a Jump in Sales -- Barrons.com Conagra Stock Climbs on a Strong Forecast Following a Jump in Sales -- Barrons.com Dow Jones By Teresa Rivas Conagra Brands stock was rising in premarket trading Tuesday, after the packaged-food maker's upbeat forecast overshadowed a light bottom-line result in its fiscal fourth-quarter earnings report. Conagra (ticker: CAG) said it earned 41 cents a share on revenue of $3.29 billion. Analysts were forecasting earnings of 51 cents on revenue of $3.13 billion. The company highlighted a 21% increase in volume and favorable pricing behind its 21.5% increase in organic sales in the quarter, related to increased at-home food consumption during the Covid-19 pandemic. For the first quarter, Conagra said it expects to earn between 54 cents and 59 cents a share, compared with the 54-cent consensus estimate. It also reaffirmed its full-year guidance, saying it expects EPS of $2.66 to $2.76, above the $2.50 average analyst estimate. Conagra shares were up 3.1% to $34.75 on the heels of the report, while the S&P 500 futures were down 0.4%. Barron's has noted previously that the at-home food boom isn't over yet, as there are many reasons why consumers may choose to dine out less, especially as coronavirus cases continue to climb, forcing some states to halt or backtrack on their reopening plans. A number of analysts have also highlighted catalysts for Conagra even after the pandemic subsides, especially as consumers form new habits and have had favorable experiences with new foods they have tried. While Conagra's profit was a little light in the quarter, its sales came in comfortably ahead of expectations, thanks to shoppers experimenting more with new food items. Investors were likely most heartened by its forecast, which is easily above analyst estimates for the current quarter and the year. |
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