ConAgra Foods Inc.
) reported fourth-quarter and fiscal 2012 loss per share from
continuing operations of $0.21 (as reported), down from earnings
per share of $0.61 reported a year ago. The loss per share included
a benefit of $0.02 from pension accounting changes.
However, diluted earnings per share from continuing operations
adjusted for items impacting comparability was recorded at $0.51 in
the fourth quarter of 2012. This included net expense of $0.72 for
the current quarter.
The adjusted earnings per share increased 9% year over year
compared with $0.47 in the year-ago period. Fourth quarter 2011
earnings per share included a net benefit of $0.14.
For FY12, diluted earnings per share (from continuing
operations) came in at $1.12, which includes benefit of $0.08 from
the pension accounting changes, whereas diluted earnings per share
adjusted for items impacting comparability was recorded at $
Net sales improved 6.3% from the year-earlier quarter to
$3,413.6 million from $3,210.0 million, based on improved pricing,
moderating inflation and contribution from acquired businesses.
Reported revenue was above the Zacks Consensus Estimate of $3,398
On a segmental basis, Commercial Foods surged 6.8% y/y to
$1,263.9 million, led by the benefit of a commodity-driven price
rise in the segment. Revenues from the Consumer Food segment rose
6.1% to $2,149.7 million during the quarter. The rise reflects
contribution from favorable price/mix.
For full year, revenue was reported at $13,262.6 million,
compared with $12,303.1 million a year-ago.
In the reported quarter, cost of goods sold (COGS) increased
9.1% from the year-earlier quarter to $2,732.7 million. SG&A
(selling, general and administrative) expense was $786.1 million,
up 184.7% year over year. Net interest expense was recorded at
$50.8 million, down 7.5% year over year. Operating margin was
recorded at 11.9%, down compared with 15.3% during the year-earlier
For FY12, operating margin was recorded at 12.1%, down compared
with 13.3% recorded in FY11.
Exiting fourth quarter, net cash flow from operating activities
was recorded at $ 1,052.0 million compared with $1,352.3 million a
year ago. Moreover, at the end of the quarter, additions to
property, plant and equipment was recorded at ($336.7) million
compared with ($466.2) million in the year-earlier
Cash and cash equivalents at end of the period were $ 103.0
million, down from $ 972.4 million in the year-ago quarter.
During the quarter, the company completed acquisitions of Del
Monte Canada, Odom's Tennessee Pride, and Kangaroo Brands' pita
For fiscal 2013, ConAgra expects earnings per share growth of
6-8% year over year, adjusted for items impacting comparability
based on contributions from acquired businesses, continued growth
in its Lamb Weston potato operations, and margin management. The
company anticipates operating cash flow in excess of $1.2
Omaha, Nebraska-based ConAgra Foods Inc. is one of North
America's leading food companies, serving grocery retailers,
restaurants and other foodservice establishments, with brands in
97% of America's households.
The company has given tough competition to its peers, such as
HJ Heinz Co.
Kraft Foods Inc
We hold a Neutral recommendation on ConAgra over the long term.
Currently, ConAgra has a Zacks #4 Rank, implying a short-term (1-3
months) Sell rating.
CONAGRA FOODS (CAG): Free Stock Analysis Report
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