ConAgra Posts Loss on Accounting Change, Beats Forecasts

by Christopher Freeburn | June 21, 2012 11:47 am

ConAgra Posts Loss on Accounting Change, Beats Forecasts

ConAgra Foods (NYSE:CAG[1]) 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[2]. 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.

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.

Endnotes:
  1. CAG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CAG
  2. charges resulting from a shift in its pension plan’s financial reporting: http://www.reuters.com/article/2012/06/21/us-conagra-results-idUSBRE85K0NW20120621

Source URL: http://investorplace.com/2012/06/conagra-posts-loss-on-accounting-change-beats-forecasts/
Short URL: http://invstplc.com/1nCwkVt