This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
by Zacks Equity ResearchOctober 01, 2012 | Comments : 0 Recommended this article: (0)
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
Last week, ConAgra Foods reported fiscal first quarter 2013 (ended August 26, 2012) adjusted earnings per share of 44 cents, topping the Zacks Consensus Estimate by 25.7% and improving upon last years performance of 31 cents by 41.9%.
Revenue grew 6.7% to $3,312 million thanks to improved pricing and strengthening businesses at the Commercial and Consumer segments. Operating margin was recorded at 11.1%, against 4.4% last year.
For fiscal 2013, ConAgra revised its adjusted earnings per share guidance to between $2.03 and $2.06. Previously, the company was calling for an increase of 6% to 8% over 2012 earnings of $1.84, implying a range of $1.95 - $1.99. Also, the companys Board of Directors approved a one cent increase in the quarterly dividend rate, which now stands at 25 cents. The revised annualized dividend rate came in at $1.00 per share.
Moreover, ConAgra Foods plans to expand its plant in the Russellville, Arkansas area by investing $100 million to accommodate the making of Bertolli and P.F. Chang's frozen meals. The expansion is likely to create at least 80 new jobs.
Earnings Estimates Move Higher
Over the last 7 days, nine of 11 estimates were revised upward for fiscal 2013, boosting the Zacks Consensus Estimate by 4.5% to $2.07 per share. Meanwhile, the Zacks Consensus Estimate for 2014 moved up 3.8% to $2.20 as 7 of 12 estimates advanced. These outlooks suggest year-over-year growth of 12.3% for 2013 and 6.2% for 2014.
ConAgra has been regularly paying a dividend and increasing the quarterly rates at intervals since 1977. The 5-Year average dividend yield for ConAgra Foods stands at 3.6%, while the stock currently yields a solid 3.7% based on an annual dividend rate of $1.00 per share.
ConAgra Foods is currently trading at a forward P/E of 13.3x compared with 15.7x for the peer group. The companys PEG ratio is currently at 1.92. ROE stands at 16.9% compared with the peer group average of 20.5%.
As can be observed from the Price & Consensus chart below; the company has been consistently performing well since 2009. Prospects appear bright as the Zacks Consensus Estimates are trending higher for future years.
Headquartered in Omaha, Nebraska, ConAgra Foods was incorporated in 1919. The $11.2 billion company is one of North Americas leading food processed and packaged food companies. With brands reaching almost 97% of North American homes, ConAgra Foods sells nearly 12.3 million packages of food products each day, including 3.8 million frozen food packages.
Want More of Our Best Recommendations?
Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.
Please login to Zacks.com or register to post a comment.