Seeking Alpha
Profile| Send Message|
( followers)  

ConAgra Foods, Inc. (NYSE:CAG) is scheduled to report its Q1 2013 results on September 20, 2012, before market opens. The street expects EPS and revenue of $0.36 and $3.24B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from CAG and the news from its closest competitors.

(click to enlarge)

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last three quarters. In the last quarter it reported $0.51 EPS, just beating analyst estimates of $0.50.

(click to enlarge)

The consensus EPS estimate is $0.36 based on 13 analysts' estimates, up from $0.29 a year ago. Revenue estimates are $3.24B, up from $3.07B a year ago. The median target price by analysts for the stock is $28.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 24, 2012, KeyBanc Capital Mkts initiated Buy rating for the company.

Latest News

  • On August 20, 2012, ConAgra Foods Inc announced that it has completed its acquisition of the Bertolli and P.F. Chang`s Home Menu frozen meals businesses from Unilever PLC, for total cash consideration of $267 million, subject to adjustment.
  • On July 30, 2012, ConAgra Foods, Inc. announced that for fiscal 2013, it expects year over year earnings per share (EPS) growth of 6%-8%, over the comparable fiscal 2012 EPS of $1.84. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $1.98 for fiscal 2013.
  • On July 30, 2012, Unilever plc announced that it has signed a definitive agreement for the sale of its North America frozen meals business to ConAgra Foods, Inc. for a total cash consideration of $265 million.
  • On June 21, 2012, ConAgra Foods, Inc. announced that for fiscal 2013, it expects year over year earnings per share growth of 6%-8%, adjusted for items impacting comparability.
  • On May 22, 2012, ConAgra Foods, Inc. announced that it has acquired Kangaroo Brands` pita chip business. Based in Milwaukee, WI, Kangaroo Brands is in private label pita chips and generates approximately $20 million in annual revenue.
  • On May 15, 2012, ConAgra Foods, Inc. announced that it has closed its acquisition of Odom's Tennessee Pride, a producer of frozen and refrigerated breakfast sandwiches and sausage.
  • On April 17, 2012, ConAgra Foods, Inc. announced that it has agreed to acquire Odom's Tennessee Pride, a producer of frozen and refrigerated breakfast sandwiches and sausage.
  • On April 5, 2012, ConAgra Foods, Inc. announced that the board of directors have approved a dividend payment of $0.24 per common share to be paid on June 1, 2012, to stockholders of record at the close of business on April 30, 2012.
  • On March 22, 2012, ConAgra Foods, Inc. announced that it continues to expect fiscal 2012 EPS to reflect a low- to mid-single-digit rate of growth (year-over-year), adjusted for items impacting comparability.

Competitors

General Mills (NYSE:GIS), H. J. Heinz (NYSE:HNZ), Kellogg (NYSE:K), Kraft Foods (KFT), and Unilever (NYSE:UN) are considered major competitors for ConAgra Foods and the table below provides the key metrics for these companies and the industry.

ConAgra Foods, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

CAG Chart

CAG data by YCharts

Competitors' Latest Development

  • On September 14, 2012, Reuters reported that UnitedHealth Group Inc will replace Kraft Foods Inc in the Dow Jones industrial average, putting the insurer in the storied 30-stock index at a time when an aging U.S. population is making healthcare one of the strongest-growing segments of the economy.
  • On September 10, 2012, H.J. Heinz Co announced that for fiscal 2013, it expects at least 4.0% organic sales growth; constant currency EPS growth of 5%-8% on a continuing operations basis and excluding special items in Fiscal 2012.
  • On September 7, 2012, Kraft Foods Inc announced that for fiscal 2013, outlook is consistent with long-term profile. On the top line, the Company expects organic net revenue growth of 5% to 7%, on the bottom line, it expects operating EPS of $1.50 to $1.55. Long-term guidance of 5% to 7% top-line growth and double-digit EPS growth on a constant currency basis will put in the top tier of peer group.
  • On August 29, 2012, H.J. Heinz Co announced that for fiscal 2013, it expects at least 4.0% organic sales growth; constant currency EPS growth of 5%-8% on a continuing operations basis and excluding special items in Fiscal 2012.
  • On August 28, 2012, H.J. Heinz Co announced that its Board of Directors declared quarterly dividends on both common and preferred stock. The Heinz Board declared Common Stock dividends $0.515 per share on the Company's $0.25 par value Common Stock payable on October 10, 2012 to shareholders of record at the close of business on September 17, 2012.
  • On August 21, 2012, Reuters reported that Kraft Foods Inc would sell a majority stake in its Back to Nature food brand to U.S. private equity firm Brynwood Partners for an undisclosed amount.
  • On August 14, 2012, Kraft Foods Inc announced that its Board of Directors approved the spin-off of its North American grocery business and declared a pro rata distribution of shares of Kraft Foods Group, Inc. (which will hold the North American grocery business) to holders of Kraft Foods Inc. common stock.
  • On August 3, 2012, Dow Jones reported that Unilever NV's USD 1 billion bond, consisting of USD 450 million fixed rate notes due July 30, 2015 and USD 550 million fixed rate notes due August 2, 2017, launched on July 30, 2012, has been closed.
  • On August 1, 2012, General Mills, Inc. announced the completion of its acquisition of Yoki Alimentos SA.
  • On July 20, 2012, Kellogg Company announced that its Board of Directors declared a dividend of $0.44 per share on the common stock of the Company, payable on September 17, 2012, to shareowners of record at the close of business on September 4, 2012.
  • On July 18, 2012, Kraft Foods Inc and SodaStream International, Ltd. announced the expansion of their strategic partnership for the manufacturing, marketing, distribution and sale of Kraft Foods beverage brands for use with the SodaStream soda making system.
  • On July 10, 2012, General Mills, Inc. announced that for fiscal 2013, the Company still targeting net sales to grow at a mid single-digit rate and expects adjusted diluted earnings per share to grow approximately $2.65, including headwinds from pension expense, tax, and acquisition-related costs for Yoki.
  • On June 27, 2012, General Mills, Inc. announced that for fiscal 2013, it expects net sales to grow at a mid-single-digit rate. The fiscal 2013 guidance provided above does not include any contribution from the anticipated acquisition of Yoki Alimentos, S.A., a Brazilian food company.
  • On June 26, 2012, General Mills, Inc. announced that its Board of Directors has approved an 8% dividend increase for General Mills common stock. The new quarterly dividend of $0.33 per share is payable August.
  • On June 19, 2012, Dow Jones reported that Unilever NV (Unilever) announced the reorganization of Unilever Belgium, which might affect approximately 50 jobs.
  • On June 5, 2012, The Coca-Cola Company, Ford Motor Company, H.J. Heinz Company, NIKE, Inc. and Procter & Gamble announced the formation of the Plant PET Technology Collaborative (NASDAQ:PTC), a strategic working group focused on accelerating the development and use of 100% plant-based PET materials and fiber in their products.
  • On May 31, 2012, Procter & Gamble Co announced that it has completed the sale of its Pringles business to Kellogg Company in a $2.695 billion all-cash transaction effective June 1, 2012.
  • On May 24, 2012, General Mills, Inc. announced that it has signed a definitive agreement to acquire Yoki Alimentos S.A., a privately-held food company headquartered in Sao Bernardo do Campo, Brazil.
  • On May 24, 2012, H.J. Heinz Co announced that it expects organic sales growth of at least 4% and constant currency EPS growth of 5%-8% ($3.52 to $3.62) from continuing operations, excluding special charges in fiscal 2012.
  • On May 24, 2012, H.J. Heinz Co announced that its Board of Directors has approved a 7.3% increase in the annualized common stock dividend. The quarterly common stock dividend will increase from $0.48 to $0.515 per share quarterly for all shareholders of record as of June 24, 2012, payable July 10, 2012.
  • On May 22, 2012, General Mills, Inc. announced a productivity and cost savings plan designed to improve organizational effectiveness and focus on key growth strategies.
  • On May 15, 2012, General Mills, Inc. announced that for fiscal 2012, it expects to deliver adjusted diluted earnings per share of $2.53 to $2.55. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $2.54 for fiscal 2012.
  • On May 3, 2012, Kraft Foods Inc announced that it continue to expect fiscal 2012 Organic Net Revenue growth of approximately 5% and Operating EPS growth of at least 9% on a constant currency basis.
  • On April 23, 2012, Kellogg Company lower fiscal 2012 earnings guidance and expects reported earnings, which include the expected impact of the acquisition of Pringles, to be in a range of $3.18 to $3.30 per share.
  • On March 27, 2012, BM&FBovespa (Bovespa) announced that, on April 4, 2012, the Brazilian Depositary Receipts (BDRs) Level I of H J Heinz Co will start being traded on Bovespa's over-the-counter (OTC) market, quoted in BRL per unit and with standard trading lot of 100 BDRs, under the ticker HNZB11.
  • On March 21, 2012, General Mills, Inc. reaffirmed fiscal 2012 adjusted diluted earnings per share guidance of $2.53-$2.55. The guidance excludes mark-to-market valuation effects, and integration costs for the Yoplait acquisition.

Technical Overview


The stock has a market capitalization of $10.39B and is currently trading at $25.59 with a 52 week range of $22.39 - $27.34. The stock's year-to-date performance has been -0.27%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: ConAgra Foods Reports September 20