ConAgra sinks 11% after light FY2019 guidance

|About: ConAgra Brands, Inc. (CAG)|By:, SA News Editor

ConAgra (NYSE:CAGslumps 11% after FY2019 guidance for adjusted EPS from continuing operations falls short of the consensus estimate.

Sees total FY2019 adjusted EPS from continuing operations of $2.03-$2.08; consensus estimate of $2.12.

Sees total ConAgra reported net sales up 22%-23% for the year; organic net sales, excluding Trenton, up 1.0%-2.0%.

Reaffirms FY2019 net sales, margin guidance for legacy ConAgra brands.

Fiscal Q2 organic net sales, excluding the sale of its Trenton, MO, plant, slid 1.6%; 220 basis points of decline in organic sales growth attributed to the impact of hurricanes in the prior-year period.

Q2 net sales for grocery & snacks segment basically flat at $900M; organic net sales declined 1.9%.

Q2 refrigerated & frozen segment net sales increased 1.7% to $722M; organic net sales +0.5%.

Sees exceeding $215M Pinnacle-related cost synergy target.

"While this work will take time, we have done this before and remain confident in our ability to enhance Pinnacle's portfolio of leading brands and drive long-term shareholder value," says ConAgra President and CEO Sean Connolly.

Previously: ConAgra Brands beats by $0.10, beats on revenue (Dec. 20)

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