The 10-second takeaway
For the quarter ended Nov. 25 (Q2), ConAgra Foods beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins grew across the board.
ConAgra Foods logged revenue of $3.74 billion. The 12 analysts polled by S&P Capital IQ anticipated a top line of $3.69 billion on the same basis. GAAP reported sales were 9.7% higher than the prior-year quarter's $3.40 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.57. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.51 for Q2 were 24% higher than the prior-year quarter's $0.41 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 23.1%, 60 basis points better than the prior-year quarter. Operating margin was 9.8%, 50 basis points better than the prior-year quarter. Net margin was 5.7%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.61 billion. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $14.30 billion. The average EPS estimate is $2.07.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 619 members out of 689 rating the stock outperform, and 70 members rating it underperform. Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 189 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 $29.77.
Can your portfolio provide you with enough income to last through retirement? You'll need more than ConAgra Foods. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add ConAgra Foods to My Watchlist.