Packaged foods maker ConAgra Foods, Inc. ( CAG ) on Tuesday posted lower-than-expected fiscal first quarter earnings, hurt by rising input costs.
The Omaha-based company reported fiscal first quarter net income of $85.3 million, or 20 cents per share, compared with $146.4 million, or 33 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 29 cents per share.
Revenue rose 10% from last year to $3.07 billion.
On average, Wall Street analysts expected a higher profit of 31 cents per share, albeit on lower revenue of $2.94 billion.
Looking ahead, the company backed its full-year earnings forecast. On Monday, the company withdrew its bid for rival food maker Ralcorp ( RAH ) after multiple failed offers.
ConAgra shares fell 88 cents, or -3.8%, in premarket trading Tuesday.
The Bottom Line
Shares of Conagra Foods ( CAG ) have a 3.93% dividend yield, based on last night's closing stock price of $23.39. The stock has technical support in the $21-$22 price area. If the shares can firm up, we see overhead resistance around the $25-$27 price levels.
ConAgra Foods, Inc. ( CAG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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