Markets

ConAgra’s Q1 Profit Plunges 42%, Missing View; Forecast Reaffirmed (CAG)

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.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CAG

Other Topics

Stocks

Latest Markets Videos