Conagra's (CAG) Q2 Earnings Beat Estimates, Sales Up Y/Y
Zacks Investment Research | Dec 18, 2019 10:10PM ET
Conagra Brands, Inc. (NYSE:CAG) released second-quarter fiscal 2020 results, wherein earnings beat the Zacks Consensus Estimate for the second straight time but sales marked its fourth consecutive miss. Nonetheless, the top line advanced year over year on the back of gains from Pinnacle Foods, partly countered by divestitures of the Wesson oil business, Gelit and DSD Snacks businesses (also known as “Sold Businesses”). Shares of the company gained more than 5% during the pre-market trading session on Dec 19.
Results gained from the Conagra Way playbook and robust momentum in the frozen and snacks business. Further, the company’s grocery brands — Hunt's and Chef Boyardee — performed well. Additionally, the company made solid progress with Pinnacle Foods’ integration. Conagra expects to see a strong performance in the second half of fiscal 2020, on the back of innovation in frozen and snacks categories, continued promotions of key brands, constant synergies and Pinnacle Foods’ action plan.
Earnings & Sales
Conagra’s quarterly adjusted earnings came in at 63 cents, which surpassed the Zacks Consensus Estimate of 57 cents. However, the figure declined about 6% from 67 cents reported in the year-ago period. The year-over-year decline was caused by higher outstanding share count, partly offset by increased adjusted net income. Adjusted net income growth was backed by Pinnacle Foods’ operating profit, cost-saving synergies and higher organic sales.
Conagra Brands Inc. Price, Consensus and EPS Surprise
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