ConAgra Foods Inc.
), a leading North American food company, reported impressive
fiscal second quarter 2013 (ended November 25, 2012) results. The
company saw a significant rise in the earnings due to
improvements in the Lamb Weston potato operations coupled with
improved pricing. ConAgra, hopeful of further improvement in the
future, also increased its earnings outlook for fiscal 2013.
Let's take a brief look at the company's financials for the
fiscal second quarter 2013:
The manufacturer of branded and non-branded food posted a
16.3% increase year over year in the earnings on a continuing
basis, adjusted for comparability, to settle down at 57 cents for
the quarter. The results surpassed the Zacks Consensus Estimate
of 55 cents by 3.6%.
Revenue for the reported quarter improved 8.9% to $3,735.5
million from $3,431.7 million in the year-earlier quarter.
Results in the quarter were driven by improved potato operations,
moderating inflation and contribution from acquired businesses.
Revenue outshined the Zacks Consensus Estimate of $3,691 million
Please follow the link for further details on ConAgra Foods
Inc's fiscal second quarter 2013 financials:
CAG Demonstrates Strong Growth
Agreement/Magnitude of Estimate Revisions
The recent quarter results along with the increase in guidance
for fiscal 2013 by the management have triggered an estimate
revision for the company in either direction. In the last 7 days,
of the 7 estimates for 2013, 5 were revised upwards by the
analysts covering the stock. However, out of the 12 estimates for
2014, 5 were revised upwards while 2 were lowered by the analysts
in the last 7 days.
For the fiscal third quarter of 2013, from a total of 11
estimates, there were 2 positive revisions.
As for magnitude of estimate revision, in the last 7 days,
estimate for the third quarter remained neutral at 55 cents.
However, for 2013, estimates increased from $2.06 to $2.09 along
with an increase from $2.25 to $2.30 for 2014.
The Zacks Consensus Estimates represents a year-over-year
growth of 7.3% for third quarter, 13.6% for 2013 and 10.1% for
The company seems to have a bright future in the Consumer
Foods segment, following the acquisitions it has undertaken so
far. The cost reduction activities are in place, leading to the
possibility of higher earnings. The pending acquisition of
Ralcorp Holdings Inc. is an added advantage, as it will lead to
cost synergies in the future. We continue to expect the company
to earn high revenues along with an increase in the earnings.
Currently, we maintain a Neutral recommendation on ConAgra
Foods Inc. The stock also bears a Zacks #2 (Buy) Rank, while its
H J HEINZ CO
BRF Basil Food
) carry a Zacks #3 (Hold) Rank.
About Zacks Earnings Scorecard
As a PhD from MIT, Len Zacks proved over 30 years ago that
earnings estimate revisions are the most powerful force
impacting stock prices. He turned this ground breaking
discovery into two of the most celebrating stock rating systems
in use today. The Zacks Rank for stock trading in a 1 to 3
month time horizon and the Zacks Recommendation for long-term
investing (6+ months). These "Earnings Estimate Scorecard"
articles help analyze the important aspects of estimate
revisions for each stock after their quarterly earnings
announcements. Learn more about earnings estimates and our
proven stock ratings at http://www.zacks.com/education/
BRF-BRASIL FOOD (BRFS): Free Stock Analysis
CONAGRA FOODS (CAG): Free Stock Analysis
HEINZ (HJ) CO (HNZ): Free Stock Analysis
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