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. (CAG). Competitors: Kraft Foods Inc. (KFT), Unilever plc (UL), Tyson Foods Inc. (TSN), The J. M. Smucker Company (SJM), Groupe Danone (DA), Smithfield Foods Inc. (SFD), General Mills Inc. (GIS), Campbell Soup Co. (CPB)
Related: ConAgra Q4FY07 Q&A [pdf]
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