ConAgra Posts Loss on Accounting Change, Beats Forecasts

The company benefits from ebbing commodity price inflation

   

ConAgra Foods (NYSE:CAG) posted a fourth-quarter loss of $86.2 million on Thursday, driven by charges resulting from a shift in its pension plan’s financial reporting. During the same time in 2011, it recorded a profit of $250.1 million.

Adjusted fourth-quarter EPS, which exclude the accounting charges, came in at 52 cents, compared to a loss of 21 cents including the charges. That surpassed Wall Street’s forecast of adjusted EPS of 51 cents, Reuters noted.

iStock 000006398717XSmall e1294848351861 ConAgra Posts Loss on Accounting Change, Beats Forecasts
World Food Prices Drop, Rising Dollar Dents Effect

Fourth-quarter sales increased 6.3% to $3.41 billion. That also beat estimates of $3.38 billion. Investors liked the news, sending ConAgra shares up more than 3% in Thursday morning trading.

Looking forward, the company said it expected adjusted EPS to increase between 6% and 8% during the current fiscal year. It noted that commodity inflation had fallen to 6% compared to double digits seen in prior quarters.

ConAgra has recently acquired a number of other businesses, including Del Monte Canada, National Pretzel, Kangaroo Brands’ pita chips and Odom’s Tennessee Pride.


Article printed from InvestorPlace Media, http://investorplace.com/2012/06/conagra-posts-loss-on-accounting-change-beats-forecasts/.

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