ConAgra Foods posted its quarterly revenue that missed analysts’ estimates. Earnings, however, topped expectations. The food company indicated that inflationary pressures were dampening demand, and therefore weighing on the firm’s annual earnings outlook.
ConAgra Foods’ earnings per share for the quarter came in at $0.65, compared to analysts; expectations of $0.6338 (based on Ivesting.com).
Revenue of $2.91 billion fell short of analysts’ estimates of $2.93 billion.
For the full-year, Conagra now expects adjusted profit per share growth in the range of 1% to 5%, compared with expectations of an 8.3% growth, and gross inflation is predicted to be in the low-teen percentage range for the year (as mentioned in a Reuters report).
CEO Sean Connolly mentioned in an interview with Reuters that spreads and hot dogs are categories where consumers are more sensitive to price hikes.
On Wednesday, U.S. consumer price data revealed that the Consumer Price Index in the 12 months through June surged +9.1%, their sharpest rise since November 1981.