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Stock Market & Financial Investment News

News Breaks
June 18, 2014
11:26 EDTSJM, KRFT, DF, THS, CAGConAgra sinks after cutting EPS outlook for Q4
Shares of packaged foods company ConAgra (CAG) are sinking after the company lowered its fourth quarter adjusted earnings per share outlook below prior expectations. WHAT'S NEW: This morning, ConAgra cut its Q4 adjusted EPS view to approximately 55c compared to its prior view of slightly in excess of 60c per share. The consensus forecast of analysts for Q4 EPS prior to the report was 62c. The lower-than-expected comparable EPS is largely the result of a 7% quarterly volume decline for the Consumer Foods segment, as well as weak profits for the Private Brands segment. Gary Rodkin, CEO of ConAgra Foods, commented," We are disappointed with the Consumer Foods volume performance, which negatively impacted comparable EPS. As we have communicated, we are in the process of improving product mix and promotion strategies in the Consumer Foods segment for better results and greater effectiveness, and we expect our volume performance to improve in fiscal 2015 as a result of this. Given the profit challenges in our Private Brands segment, we are also focused on margin improvement initiatives to offset the impact of pricing concessions. Even though our earnings are below expectations, we exceeded our fiscal 2014 operating cash flow and debt reduction targets." WHAT'S NOTABLE: For FY15, the company expects a year of "'stabilization and recovery" that delivers mid-single-digit comparable EPS growth. The company expects that comparable EPS growth in fiscal 2016 and 2017 will accelerate to a high-single-digit rate as the company benefits from stronger underlying operations, generates sizable productivity and administrative savings and continues to realize substantial synergies from the Ralcorp transaction. The company, which remains committed to a strong dividend policy in the future, plans to continue its current $1.00 per share annual dividend payment. ConAgra said its current profit projections for the Private Brands segment are below original plans for the next several years. ANALYST REACTION: This morning, KeyBanc downgraded ConAgra to Hold from Buy. PRICE ACTION: In late morning trading, ConAgra fell $2.25, or about 7%, to $30.60 on nearly twice its average daily trading volume. Including today's pull back, the stock is down approximately 11% over the past 12 months. OTHERS TO WATCH: Shares of ConAgra peer Dean Foods (DF) are down about 2%, while Kraft Foods (KRFT) is down modestly. The J.M. Smucker Company (SJM) is virtually unchanged and TreeHouse Foods (THS) is down over 1.3%.
News For CAG;DF;SJM;THS;KRFT From The Last 14 Days
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April 28, 2015
19:10 EDTKRFTOn The Fly: After Hours Movers
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16:15 EDTKRFTKraft Foods reports Q1 un-adjusted EPS 72c, consensus 81c
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15:06 EDTKRFTNotable companies reporting after market close
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09:13 EDTKRFTKraft Foods May weekly volatility elevated into Q1 and outlook
Kraft Foods May weekly call option implied volatility is at 41, May is at 21, June is at 17, September is at 15; compared to its 26-week average of 18 according to Track Data, suggesting large near term price movement into the expected release of Q1 results today.
April 20, 2015
18:02 EDTCAGConAgra reaffirms FY15 adjusted EPS $2.15-$2.19, consensus $2.17
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09:07 EDTKRFTKraft Foods to remove synthetic colors and artificial preservative in US in 2016
Kraft Macaroni & Cheese announced that starting in January 2016, Original Kraft Macaroni & Cheese in the U.S. will no longer be made with artificial preservatives or synthetic colors. Kraft Dinner in Canada will remove synthetic colors by the end of next year in Kraft Dinner Original. Kraft will replace the synthetic colors with those derived from natural sources like paprika, annatto and turmeric.

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