ConAgra Foods Inc.
) will be reporting its fourth-quarter 2012 results on Thursday,
June 21, 2012.
The current Zacks Consensus Estimate for earnings per share is
50 cents, representing an annualized growth of 5.47%.
With respect to earnings surprises over the trailing four
quarters, CAG outperformed the Zacks Consensus Estimate in two
quarters and underperformed in the rest. Average earnings
surprise was 1.86%, implying that the company outperformed the
Zacks Consensus Estimate by the same magnitude over the last four
Third Quarter 2012 Highlights
On March 22, 2012,
ConAgra Foods Inc.
reported third-quarter fiscal 2012 results, with diluted earnings
per share (from continuing operations) of 65 cents, up 25% from 52
cents in the year-ago quarter.
The improvement in results reflect benefit from the company's
total margin management efforts, including price increase in
operating segments as well as cost savings. The results beat the
Zacks Consensus Estimate of 49 cents.
Net sales improved 7.4% from the year-earlier quarter to
$3,373.1 million from $3,141.3 million, based on improved volumes,
favorable price/mix and strategic increase in prices to mitigate
rising input cost. Reported revenue was above the Zacks Consensus
Estimate of $3,364 million.
Agreement of Estimate Revisions
In the last 30 days, no analyst increased or decreased the
company's earnings per share estimates for the fourth quarter of
2012, as there was no catalyst for such change. Also, none
increased or decreased the same for fiscal 2012. However, one
analyst increased its estimate, while none decreased the same for
fiscal 2013 in the last 30 days.
Magnitude of Estimate Revisions
Estimates over the last 30 days remained static at 50 cents per
share for the fourth quarter of 2012.
Estimate for fiscal 2012 increased marginally from $1.77 to
$1.78 over the last 30 days while that for fiscal 2013 showed a
similar trend of increase from $1.93 to $1.94. These estimates
represented a year-over-year growth of 1.43% and 9.08% for 2012 and
ConAgra is likely to post encouraging results in the fourth
quarter and fiscal 2012. The company's balanced pricing, smart
marketing and cost-saving initiatives deliver tremendous value to
consumers, which will be reflected in the upcoming results. We are
optimistic on company's great business prospects in its renowned
brands, which will certainly raise market share going ahead.
The company has been facing challenges from private label
suppliers as well as big banners like
HJ Heinz Co. (
Kraft Foods Inc
). Therefore, fierce competition may shrink the company's market
shares while affecting ConAgra's profits.
We currently maintain a long-term 'Neutral' recommendation on
the stock. Hormel has a Zacks #3 Rank, which translates into a
short-term (1-3 months) 'Hold' rating.
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