ConAgra Foods Earnings: Here’s Why Shares are Down Now

ConAgra Foods, Inc. (NYSE:CAG) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.0%.

ConAgra Foods, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 15.91% to $0.37 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Rose 26.88% to $4.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: ConAgra Foods, Inc. reported adjusted EPS income of $0.37 per share. By that measure, the company missed the mean analyst estimate of $0.39. It missed the average revenue estimate of $4.29 billion.

Quoting Management: Gary Rodkin, ConAgra Foods’ chief executive officer, said, “Our first-quarter Consumer Foods volumes were lower than planned due to category and customer challenges. We are revising our merchandising and promotion plans to improve our volume, and we have already begun additional SG&A cost management initiatives that should improve EPS performance as the fiscal year progresses. We still expect to post good EPS growth this fiscal year, and we are confident in our long-term EPS growth and cash flow outlook as the sizeable synergies from Ralcorp are achieved over the next few years.”

Key Stats (on next page)…

Revenue decreased 8.52% from $4.59 billion in the previous quarter. EPS decreased 38.33% from $0.60 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.67 to a profit $0.64. For the current year, the average estimate has moved down from a profit of $2.48 to a profit of $2.35 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)