ConAgra beats by $0.13, misses on revs; remains on-track to execute the spin-off of the Lamb Weston business this fall :
- Reports Q1 (Aug) earnings of $0.61 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus of $0.48; revenues fell 4.6% year/year to $2.67 bln vs the $2.73 bln Capital IQ Consensus. Net sales decreased 5% as a result of volume declines associated with the Company's actions to build a higher quality revenue base, partially offset by Lamb Weston's continued growth and increased price/mix. Divestitures and the impact of foreign exchange reduced sales ~2 % points.
- Gross profit (net sales less cost of goods sold) as a% of net sales expanded ~200 basis points behind pricing and trade spending discipline, mix improvement, and supply chain efficiencies.
- The Company expects this to be the last earnings release as ConAgra Foods.
- The Company remains on-track to execute the spin-off of the Lamb Weston business this fall. The spin-off will result in two independent, publicly-traded, pure play companies, Conagra Brands and Lamb Weston.
- Conagra Brands and Lamb Weston have announced their intention to host investor events on October 18, 2016 and October 13, 2016, respectively. Each company expects to share more details, including fiscal year 2017 and longer-term outlooks, growth initiatives, efficiency programs, and capital allocation priorities, at these events.
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