Conagra Beats Profit Expectations, While Sales Decline

Conagra Brands Inc. reported fiscal second-quarter earnings that fell to $122.1 million, or 28 cents a share, from $154.9 million, or 36 cents a share, in the same period a year ago. Excluding non-recurring items, such as debt extinguishing costs and the impairment of goodwill, adjusted earnings per share came to 49 cents, above the FactSet consensus of 45 cents. Revenue fell 11.5% to $2.088 billion from $2.359 billion, just shy of the FactSet consensus of $2.104 billion. Grocery and snacks sales fell 5.8% to $853.9 million, refrigerated and frozen sales declined 10.5% to $740.0 million and foodservice sales eased 0.7% to $283.1 million. The company, which brands include Reddi-wip, Healthy Choice, Slim Jim and Orvill Redenbacher's, affirmed its fiscal 2017 adjusted EPS outlook of $1.65 to $1.70, which surrounds the FactSet consensus of $1.68. The stock, which was still inactive in premarket trade, has run up 16% year to date, while the S&P 500 has gained 11%.