Shares of Conagra Brands climbed Thursday, after reporting first quarter earnings that exceeded analysts’ expectations.
The owner of food brands including Birds Eye, Healthy Choice, Slim Jim and others reported adjusted earnings of 43 cents a share, compared to analysts' expectations of 39 cents.
Net income of $173.8 million, or 36 cents a share, came in lower compared to the year-ago quarter’s $178.2 million, or 45 cents a share.
Sales increased to $2.39 billion (from the prior year's $1.82 billion), but missed Wall Street's estimate of $2.48 billion.
Chief Executive Sean Connolly indicated that although Conagra’s Foodservice and International businesses experienced unexpected softness on sales for the quarter, they surpassed its operating profit and margin expectations.
For full year 2020, Conagra projects net sales growth of 13.5% to 14%, and adjusted earnings per range of $2.08 to $2.18, reiterating its guidance.