ConAgra Foods’ revenue beat estimates
Before the opening bell on April 7, ConAgra Foods (CAG) reported its financial results for fiscal 3Q16, which ended February 28, 2016. Later in the day, management held a conference call to discuss the results. The company’s performance was positive in the third quarter after a strong start in the first half of fiscal 2016. ConAgra Foods’ revenue increased by 0.69% year-over-year to $2.92 billion. Revenue in the comparable quarter in fiscal 2015 was $2.90 billion. Net sales included an adverse impact of $28 million from currency translation.
The company earns its revenue through its two segments: Consumer Foods and Commercial Foods. The Consumer Foods segment accounts for 60%–65% of total revenue. This segment saw a 2.4% decline in revenue in fiscal 3Q16, while the Commercial Foods segment saw a 6.1% increase in revenue. We’ll discuss the segments’ results in the next part of this series.
ConAgra Foods’ peer McCormick & Company (MKC) generated revenue of $1,030 million in its last quarter. Mead Johnson Nutrition Company (MJN) and WhiteWave Foods (WWAV) reported sales of $967 million and $1,028 million, respectively, in their last quarters. The Vanguard Mid-Cap Value ETF (VOE) invests 1.1% of its portfolio in ConAgra Foods’ stock.
What you’ll find in this series
In this series, we’ll discuss ConAgra Foods’ fiscal 3Q16 performance. Specifically, we’ll look at what drove the revenue increase and how the segments contributed. We’ll also see if earnings surpassed estimates and look at how cost savings drove operating profit margins for the quarter. We’ll move on to discuss how ConAgra Foods utilized the proceeds from the recent sale of its private-label business and explore the outlook for the company in 2016.
Further, we’ll look at how much ConAgra Foods returned to shareholders in fiscal 3Q16 and review how the company plans to maximize value through the proposed spin-off. We’ll also see how the stock price reacted to the earnings release and review moving averages and Wall Street’s recommendations for the stock.