Food products giant,
ConAgra Foods Inc.
), recently revised its previously announced guidance for fiscal
2014. ConAgra now expects adjusted earnings per share for fiscal
2014 in the range of $2.34 to $2.38, lowered from the previously
announced $2.40. The new estimate represents an 8% to 10% hike
over the $2.16 adjusted earnings per share reported in fiscal
This move by the company comes after the lower-than-expected
fiscal first-quarter 2014 earnings. ConAgra generated earnings
per share of 33 cents in the quarter. Adjusted earnings per share
are expected to be 37 cents. The company's weakness in the
Consumer Foods segment has been held responsible for the
ConAgra's Consumer Foods segment reported year-over-year
improved results in the fourth quarter of fiscal 2013, with
revenues increasing 7%. The segment experienced strong organic
revenue growth in the quarter, which was strengthened by the
acquisitions undertaken. However, in fiscal first-quarter 2014,
the segment was badly hit by difficult situations for some
branded retail categories and some customers, due to challenging
industry conditions. This led to a reduction in total volume for
the segment on a year-over-year basis.
However, ConAgra is trying to better the situation as the
fiscal year progresses. The company is working on its
merchandising, promotion and pricing strategies for the retail
customers along with keeping a tight check on the total costs.
However, the other financial strategies of the company, like the
reduction of debt or the integration of Ralcorp Holdings, remain
ConAgra expects to release its full fiscal first-quarter 2014
results on Sep 19, 2013.
ConAgra currently carries a Zacks Rank #3 (Hold). Other stocks
worth a watch in the industry include
Green Mountain Coffee Roasters, Inc.
Pinnacle Foods Inc.
Boulder Brands, Inc.
). While Green Mountain Coffee Roasters and Pinnacle Foods carry
a Zacks Rank #1 (Strong Buy), Boulder Brands carries a Zacks Rank
BOULDER BRANDS (BDBD): Free Stock Analysis
CONAGRA FOODS (CAG): Free Stock Analysis
GREEN MTN COFFE (GMCR): Free Stock Analysis
PINNACLE FOODS (PF): Free Stock Analysis
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