ConAgra beats by $0.05; revs +1.1%; guides FY16 EPS below consensus
Reports Q1 (Aug) earnings of $0.45 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.40; revenues rose 1.1% year/year to $2.79 bln may not compare to the $3.67 bln consensus.
- Co issues downside guidance for FY16, sees EPS of in line with last year or ~$2.18, excluding non-recurring items, vs. $2.23 Capital IQ Consensus Estimate.
- Co will offer more details on fiscal 2016 EPS guidance once it is further along with the process of divesting the private label operations, determining associated SG&A reduction targets, and finalizing investment levels for the remaining segments.
- Despite strong fundamentals and expectations for continued margin expansion, comparable operating profits for the Consumer Foods segment in Q2 are expected to be negatively impacted by foreign exchange, as well as a planned increase in marketing investment.
- Profits for the Commercial Foods segment are expected to post an increase in profitability year-over-year in the fiscal second quarter.
- The divestiture process for the private label operations is proceeding as planned, and the company expects to have an announcement on the outcome of this process later this fall.
- Co will assess opportunities to increase the dividend after it is further along with the strategic plan outlined at the end of fiscal 2015.