Conagra Brands Lifted as Americans Stock Up on Snacks, Frozen Food
Conagra Brands reported better than expected fiscal fourth-quarter financial results before the markets opened on Tuesday.
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Conagra Brands Inc. (NYSE: CAG | CAG Price Prediction) reported its fiscal fourth-quarter financial results before the markets opened on Tuesday. The company said that it had $0.75 in earnings per share (EPS) and $3.3 billion in revenue, which compares with consensus estimates of $0.66 in EPS and revenue of $3.11 billion. The same period of last year reportedly had EPS of $0.36 on $2.61 billion in revenue.
Fourth-quarter net sales increased 25.8% and organic net sales increased 21.5%, with double-digit growth in each of the company’s three retail segments. This was supported by strong e-commerce growth, significant consumer trial and solid repeat sales, and the initial launches of its fiscal 2021 innovation slate.
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In terms of its segments, the company reported net sales as follows:
- Grocery & Snacks: up 44.1% to $1.5 billion
- Refrigerated & Frozen: up 23.3% to $1.4 billion
- International up 18.6% to $266 million.
- Foodservice: down 27.9% to $193 million.
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Cash and cash equivalents totaled $553.3 million at the end of the quarter, up from $236.6 million at the end of the previous fiscal year.
Looking ahead to the fiscal first quarter, the company expects to see organic net sales growth in the range of 10% to 13%, and EPS in the range of $0.54 to $0.59. The consensus estimates call for $0.54 in EPS and $2.52 billion in revenue for the coming year.
Conagra Brands stock traded up more than 2% early Tuesday at $34.56, in a 52-week range of $22.83 to $35.59. The consensus price target is $35.43.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
