ConAgra Reports Weaker-Than-Expected FQ1 Results, Raises Dividend

ConAgra Foods Inc CAG reported an 11.4% y/y decline in its fiscal first-quarter profit. CAG posted its FQ1 profit at $146.3 million, or $0.33 per share, down from $165.2 million or $0.37 per share, in the year-ago quarter. The company's revenue slipped 2.4% y/y to $2.82 billion, as compared to $2.89 billion, in the year-ago period. However, the analysts expected the company to post its earnings at $0.38 per share, on revenue of $2.97 billion. ConAgra now projects its FY11 adjusted earnings per share to rise by 5% to 7% y/y. The company has also announced to lift its dividend by 15% to $0.92 per share on an annualized basis, from $0.80 per share, with effect from December. Gary Rodkin, ConAgra Foods' chief executive officer, said, “Our fiscal first-quarter margins and EPS were lower than planned because of an intense promotional environment and inflation that outpaced cost savings. There were, however, several signs of strength in terms of market share and brand sales, demonstrating progress and growth potential for important parts of our portfolio.” He added, “Based on the first-quarter performance and overall business conditions, we have revised our yearly outlook to 5-7% comparable EPS growth for the full year. We are confident that the strong foundation we have built over the last few years through innovation, cost savings, marketing, and sales execution initiatives will allow us to deliver our revised full-year EPS results.” CAG's shares dipped 7.96% to $20.59 in pre-market trading. Read more from Benzinga's Company news.