The 10-second takeaway
For the quarter ended Feb. 26 (Q3), ConAgra Foods met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins dropped, and net margins improved.
ConAgra Foods booked revenue of $3.37 billion. The 10 analysts polled by S&P Capital IQ expected to see a top line of $3.35 billion on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $3.15 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.51. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.49 per share on the same basis. GAAP EPS of $0.65 for Q3 were 30% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.4%, 210 basis points worse than the prior-year quarter. Operating margin was 12.3%, 120 basis points worse than the prior-year quarter. Net margin was 8.1%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.40 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $13.15 billion. The average EPS estimate is $1.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 610 members rating the stock outperform and 68 members rating it underperform. Among 180 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 167 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 hold, with an average price target of $27.00.
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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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.