By Dhirendra Tripathi
Investing.com – Shares of Conagra Brands (SA:) were gainers marginally in Thursday’s premarket trade after the company’s third quarter earnings and revenues beat expectations.
The company announced earnings per share of $0.59 in its fiscal third quarter, on revenue of $2.77 billion, as at-home consumption, driven by Covid-19, boosted sales volumes. Analysts polled by Investing.com anticipated EPS of $0.58 on revenue of $2.71B.
Rising on the back of 9.7% increase in sales at the organic level, net sales were higher by 8.5%, coming above the company’s guidance.
However, the company also warned of a sustained increase in input costs due to the pandemic. As a result, its adjusted operating margin is expected to fall to between 14%-15% in the current quarter from 16.2% in the three months through February. The company made no change to its guidance for the fiscal year through May 2022.
RBC Capital analyst Nik Modi on Tuesday maintained a ‘hold’ on Conagra Brands, setting a price target of $37, a shade lower than its closing level Wednesday.
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