The 10-second takeaway
For the quarter ended May 26 (Q4), ConAgra Foods met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Margins expanded across the board.
ConAgra Foods logged revenue of $4.59 billion. The 12 analysts polled by S&P Capital IQ predicted sales of $4.60 billion on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $3.41 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 $0.60. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.59 per share. Non-GAAP EPS of $0.60 for Q4 were 18% higher than the prior-year quarter's $0.51 per share. GAAP EPS were $0.45 for Q4 versus -$0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.7%, 60 basis points better than the prior-year quarter. Operating margin was 8.3%, 980 basis points better than the prior-year quarter. Net margin was 4.2%, 600 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.51 billion. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $18.63 billion. The average EPS estimate is $2.48.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 623 members out of 693 rating the stock outperform, and 70 members rating it underperform. Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 191 give ConAgra Foods a green thumbs-up, and 11 give it a red thumbs-down.
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