Conagra Brands Inc (NYSE: CAG) said on Tuesday its sales came in weaker than last year in the fiscal fourth quarter. Earnings and revenue, however, topped Wall Street estimates.
Conagra Brands’ net income in the fourth quarter printed at $309.5 million that translates to 64 cents per share versus the year-ago figure of $201.4 million or 41 cents per share. On an adjusted basis, it earned 54 cents per share in Q4.
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At $2.74 billion, sales came in weaker than last year’s $3.29 billion. According to FactSet, experts had forecast the company to post $2.71 billion of sales and 52 cents of adjusted per-share earnings in the recent quarter. Conagra Brands had topped Wall Street estimates in the prior quarter (Q3) as well.
CEO Connolly’s remarks on inflation pressure
The earnings report comes shortly after Conagra divested Egg Beaters. Shares of the company slipped close to 5% on Tuesday morning as CEO Sean Connolly said inflation will weigh even more in fiscal 2022.
“We have further enhanced the aggressive and comprehensive action plan already being executed, which includes broad-based pricing. While we are pleased with the initial results, there will be a lag between the time we are hit with higher costs and when we realise the benefits of our actions. The impact of this lag is expected to be most acute in the first half of fiscal 2022.”
Conagra now forecasts its net sales to remain flat on a year-over-year basis. It expects $2.50 of EPS versus the FactSet consensus of $2.62. The American food company declared $1.25 per share of an annual dividend on Tuesday.
Last month, Conagra Brands announced exciting additions to its product portfolio. The Chicago-based company accelerated transition to 100% cage-free eggs and was recognised as one of the 50 most community-minded companies in the U.S. for the third consecutive year in June.
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