ConAgra reported fiscal Q4 net income more than tripled to $192 million, or $0.39/share, boosted by "extraordinary" gains from energy trading and fertilizer operations. EPS of $0.38 from continuing operations beat analysts' average estimate of $0.31. ConAgra shares were last up around 3.3% to $26.40 in thin pre-market trading. During the quarter, revenues rose 13% to $3.33b, also topping analysts' forecast ($2.83b). ConAgra's consumer foods segment, which accounted for more than half of its total sales, was hurt by a recall of its peanut butter earlier this year. It resulted in a $0.02 negative impact to EPS, while rival J.M. Smucker recorded a 19% rise in net income. In its earnings release, ConAgra called the Street's consensus estimate for fiscal 2008 diluted EPS of $1.48 "appropriate." Shares of ConAgra gained 1.4% to $25.56 on Tuesday.
Sources: Press release, Bloomberg, MarketWatch, Reuters
Commentary: ConAgra Expecting Higher 2007 Earnings • Stock Portfolio to Weather a Volatility Shock • Consumer Staples Far Below 50-DMA: Buying Opportunity?
Stocks/ETFs to watch: ConAgra Foods Inc. (NYSE:CAG). Competitors: Kraft Foods Inc. (KFT), Unilever plc (NYSE:UL), Tyson Foods Inc. (NYSE:TSN), The J. M. Smucker Company (NYSE:SJM), Groupe Danone (DA), Smithfield Foods Inc. (NYSE:SFD), General Mills Inc. (NYSE:GIS), Campbell Soup Co. (NYSE:CPB)
Related: ConAgra Q4FY07 Q&A [pdf]
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