Conagra's stock surges after profit and sales rise above expectations
Shares of Conagra Brands Inc. surged 4.9% in premarket trade Thursday, after the branded food company reported fiscal second-quarter profit and sales that beat expectations, and provided an upbeat outlook. Net income for the quarter to Nov. 26 rose to $223.5 million, or 54 cents a share, from $122.1 million, or 28 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 55 cents, above the FactSet consensus of 52 cents. Revenue increased 4.1% to $2.17 billion, beating the FactSet consensus of $2.07 billion, with sales from the company's grocery and snack, refrigerated and frozen and foodservice businesses all topping expectations. The company, which brands include Healthy Choice, Slim Jim and Orville Redenbacher's, said it now expects fiscal 2018 adjusted EPS "near the high end" of the previously provided guidance range of $1.84 to $1.89. The stock has lost 3.6% year to date through Wednesday, while the S&P 500 has climbed 19.7%.
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