Yahoo Finance Did ConAgra Foods Beat Earnings Estimates in Fiscal 3Q16?
How ConAgra Foods Continued to Drive Profitability in Fiscal 3Q16
Earnings surpassed estimates
ConAgra Foods’ (CAG) earnings fell 3% year-over-year in fiscal 3Q16. However, the company surpassed analysts’ EPS (earnings per share) estimate of $0.55 by 4%. Adjusted EPS came in at ~$0.57 in fiscal 3Q16 compared to $0.59 in fiscal 3Q15.
What affected earnings?
The adjusted EPS included an effect of $0.11 per share from the private-label discontinued operations. This number includes a benefit of ~$0.05 per share related to the elimination of depreciation and amortization expenses. Expected earnings from the private-label operations were included in the earlier guidance for the quarter provided by ConAgra Foods.
Earnings in fiscal 3Q16 also included ~$0.16 per share of net expenses related to restructuring charges and ~$0.04 per share of net expenses related to transaction costs incurred from debt reduction during the quarter. Lastly, earnings were supported by a gain of ~$0.03 per share related to a pension settlement at a joint venture. Wall Street expects ConAgra Foods’ EPS to fall by 11% in fiscal 4Q16 and by 5% in fiscal 2016.
Peers’ earnings
ConAgra Foods’ main competitors are The Campbell Soup Company (CPB), General Mills (GIS), and Mondelez International (MDLZ). CPB saw earnings rise 32% in its last quarter. Meanwhile, GIS and MDLZ saw earnings fall 7% and 2%, respectively, in their last reported quarters.
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In the next part of this series, we’ll explore how ConAgra Foods plans to expand its margins.
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