ConAgra Foods Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component ConAgra Foods (NYSE:CAG) will unveil its latest earnings on Thursday, June 21, 2012. ConAgra Foods supplies frozen potato products, as well as other food products, to restaurants and commercial customers.

ConAgra Foods Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 50 cents per share, a rise of 6.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 53 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 50 cents during the last month. Analysts are projecting profit to rise by 1.7% compared to last year’s $1.78.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of 51 cents per share against the mean estimate of 49 cents. In the prior quarter, the company reported net income of 47 cents.

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A Look Back: In the third quarter, profit rose 26.4% to $271.6 million (65 cents a share) from $214.8 million (50 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.9% to $3.37 billion from $3.15 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 5.3% in revenue from the year-earlier quarter to $3.38 billion.

Stock Price Performance: Between March 21, 2012 and June 15, 2012, the stock price fell $1.39 (-5.3%), from $26.36 to $24.97. The stock price saw one of its best stretches over the last year between November 1, 2011 and November 8, 2011, when shares rose for six straight days, increasing 3.2% (+80 cents) over that span. It saw one of its worst periods between July 26, 2011 and August 4, 2011 when shares fell for eight straight days, dropping 8.5% (-$2.24) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.3% in the fourth quarter of the last fiscal year, 9% in the first quarter and 7.7% in the second quarter before increasing again in the third quarter.

Heading into this earnings announcement, the company is trying build on some positive momentum from last quarter’s income increase. After net income declines in the first quarter and second quarter, profit rose in the third quarter.

Analyst Ratings: There are mostly holds on the stock with eight of 11 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.76 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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