Will These Numbers from ConAgra Foods Be Good Enough for You? (CAG)

Will These Numbers from ConAgra Foods Be Good Enough for You?

ConAgra Foods (NYSE: CAG ) is expected to report Q2 earnings on Dec. 20. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict ConAgra Foods's revenues will grow 8.4% and EPS will increase 17.0%.

The average estimate for revenue is $3.69 billion. On the bottom line, the average EPS estimate is $0.55.

Revenue details
Last quarter, ConAgra Foods reported revenue of $3.31 billion. GAAP reported sales were 6.7% higher than the prior-year quarter's $3.11 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.44. GAAP EPS of $0.61 for Q1 were 177% higher than the prior-year quarter's $0.22 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 26.4%, 720 basis points better than the prior-year quarter. Operating margin was 12.9%, 610 basis points better than the prior-year quarter. Net margin was 7.6%, 460 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $14.30 billion. The average EPS estimate is $2.07.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 620 members out of 690 rating the stock outperform, and 70 members rating it underperform. Among 201 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 188 give ConAgra Foods a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ConAgra Foods is outperform, with an average price target of $27.54.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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