ConAgra Foods Inc. (NYSE: CAG) reported Thursday that its third-quarter profit rose 19 percent, citing strong sales on low-priced meals such as Banquet and Chef Boyardee, according to Associated Press.
ConAgra's earnings climbed to $229.6 million, or 51 cents per share, for the period ended Feb. 28, compared to $193.2 million, or 43 cents per share, a year earlier.
Removing one-time items such as a 2 cents-per-share gain related to the sale of its Luck's brand, profit was 44 cents per share, meeting the expectations of analysts polled by Thomson Reuters. Analysts' estimates typically exclude one-time items.
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Revenue fell 1 percent to $3.1 billion as Wall Street expected $3.15 billion.
Revenue from the consumer foods division, which makes up two-thirds of ConAgra's business, grew 2 percent, with unit volumes up 3 percent. Banquet, Chef Boyardee, Hunt's, Marie Callender's and Pam products were among the stronger.
Results were not as good at the commercial foods segment, which reported a 6 percent revenue decline. The unit, which comprises 35 percent of year-to-date sales, said the revenue drop-off was due to lower flour milling revenue resulting from passing through lower wheat costs to shoppers.
During the quarter, the company trimmed costs of goods sold by 3 percent to $2.31 billion and cut its selling, general and administrative expenses slightly to $421.9 million. Interest expense fell 5 percent to $39.9 million.
ConAgra, whose other brands include Peter Pan and Reddi-wip, said it is still on track for fiscal 2010 adjusted earnings to approach $1.73 per share. However, analysts expected a slightly higher profit of $1.75 per share for the year.
The packaged foods maker based in also maintained its full-year adjusted earnings guidance on Thursday, but it's slightly below Wall Street's forecast.
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