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ConAgra (CAG) Q3 Earnings in Line, Revenues Beat

ConAgra Foods, Inc. CAG has carved a name for itself in the processed & packaging food industry with superior processed food items for household and commercial clients. The product portfolio of this Omaha, NE-headquartered firm includes leading consumer brands that are found in 99% of America’s households.  

However, this largest packaged food business of North America faces price volatility for raw materials much like its industry peers. As the extent of industry competition is increasing over time, investors have been eagerly awaiting for the company’s latest earnings report. In the last four trailing quarters, ConAgra has reported a positive average earnings surprise of 6.25%.

Currently, ConAgra has a Zacks Rank #3 (Hold), but that could definitely change after the release of its upcoming earnings report. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: ConAgra’s earnings from continuing operations, adjusted for items impacting comparability, in the third-quarter of fiscal 2016, came in at 57 cents, in-line with the Zacks Consensus Estimate.

Revenue: ConAgra posted revenues of $2,924.1 million, above the Zacks Consensus Estimate of $2,876 million.     

Key Stats to Note: ConAgra is strategically improving its profitability on the back of greater operational efficiency and appropriate price/mix. The company claimed to generate an excess of $2.6 billion free cash through successful divestiture of its private level business. The proceeds have helped to lower the company’s debt burden by $2.15 billion and would finance its future capital allocation programs. ConAgra anticipates to generate EPS within the range of $2.05-$2.07 for full-year 2016.

Stock Price:  Shares prices of CAG did not change on a pre-market trading basis.

Check back our full write up on this CAG earnings report later!

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