Big Earnings: ConAgra Foods & FedEx Corporation
ConAgra Foods, Inc. (NYSE:CAG) shares are trading lower in today’s session as the company provides bleak outlook considering it has been raising on bargain Banquet frozen meals and other value-oriented products.
The company projects modest earnings growth in the current quarter, which for the full-year should put ConAgra’s EPS growth likely at the low-end of its low- to mid-single digit projections.
For the fiscal third-quarter, the company reported earnings growth of 26% to $271.6 million, or 65 cents a share, compared to a year ago profit of $214.8 million, or 50 cents. The profit was boosted by a lower tax rate.. On an adjusted basis, the company would have earned 51 cents a share, surpassing analysts’ estimates by 2 cents. Revenue during the period grew 7.40% year-over-year to $3.37 billion, slightly above street’s estimates of $3.35 billion.
The company seems confident in its long-term as its looks considering its $640 million of cash in hand, which could be used either through share repurchase or by acquiring food makers internationally, in categories similar to ones it already operates in or in the private-label space.
Shares of CAG are down 28 cents or 1.06% to $26.08.
FedEx Corporation (NYSE:FDX) is the biggest loser on the S&P 500 after reporting lower than estimated third quarter revenue and weak outlook for the fiscal fourth quarter.
The company expects to earn $1.75 to $2.00 per share, in the current quarter, compared to analysts’ estimates of $1.98 per share.
During the latest quarter, the company earned $521 million, or $1.65 a share, compared to a year ago profit of $231 million or 73 cents per share. On an adjusted basis, the company would have earned $1.55, topping analysts’ estimates by 20 cents.
Revenue during the quarter grew 9% year-over-year to $10.56 billion, slightly missing projections of $10.62 billion.
Shares of FDX slumped $4.20 or 4.38% to $91.62.