Conagra Brands, Inc. Q3 Revenues Drop 10%, But Margins Rise Amid Improving Product Mix
Conagra Brands, Inc. (NYSE:CAG) early Thursday [Mar 23, 2017 | 7:30am] posted solid fiscal third quarter earnings results and offered an in-line outlook for the remainder of the fiscal year, as it continues to nix underperforming products.
Written by StockNews.com
The Chicago-based packaged foods giant reported adjusted Q3 earnings per share (EPS) of $0.48, which was $0.04 better than the Wall Street consensus estimate of $0.44.
Revenues fell 9.9% from last year to $1.98 billion, matching analysts’ view.
The company noted that the quarterly sales downturn was a more reasonable -4.8% when excluding foreign currency effects. The remaining drop there was due largely to lower volumes as it seeks to build a higher quality revenue base by nixing underperforming product lines and adding new ones.
On a positive note, CAG’s adjusted gross margin rose to 31.6% in Q3, helped by lower input costs, better pricing, and the cutting of lower margin businesses.
ConAgra’s revised 2017 outlook was mostly in-line Wall Street estimates. It forecast full-year EPS of $1.65 to $1.70, while analysts are looking for $1.70 per share for the year. Net sales are expected to decline -4% to -5%, adjusted gross margins are seen in the 30.4% to 30.6% range.
The company commented on its latest results and its future product plans via press release:
“Our disciplined focus on controlling costs and upgrading the quality of our revenue base are delivering the desired impact. We are also excited about our innovation lineup, which we expect to begin hitting stores this summer.”
Continuing, “Now that we have completed the third quarter, we are updating our full year guidance to reflect the beneficial timing of certain costs and the softer near-term macro environment. We expect to deliver adjusted diluted EPS at or slightly above the high-end of our range with net sales (excluding the impacts of divestitures and foreign exchange) at or slightly below the low-end of our range.”
...Year-to-date, CAG has gained 2.88%, versus a 4.81% rise in the benchmark S&P 500 index during the same period.
CAG currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #4 of 62 stocks in the Food Makers category.
This article may have been edited ([ ]), abridged (...) and reformatted (structure, title/subtitles, font) by the editorial team of munKNEE.com (Your Key to Making Money!) to provide a ...
more