ConAgra Foods, Inc.(NYSE:CAG)’s focus on ongoing acquisition of Ralcorp

Boston, MA 04/08/2013 (wallstreetpr) – ConAgra Foods, Inc.(NYSE:CAG) is one of the leading names in the American consumer market, with 97% of the households using one or the other of the available company products. It manufactures, packages, and distributes both commercial and consumer food items. A number of different brands operate under the ConAgra Foods umbrella. Products under the consumer segment include desserts, entree, meals, snacks, condiments, and sides. The commercial product segment on the other hand are principally for the industrial, manufacturing, and food service customers. Their B2B presence supply vegetables, potato, grain products, and spices to restaurants and other commercial customers. ConAgra Foods operates via 41 production units domestically, with international facilities coming up in Canada and Puerto Rico.

On Friday CAG closed on NASDAQ at $34.42, which is 0.21% lower than its previous day’s closing. The market cap is $14.71B, with earnings per share of $1.27. According to the latest reports, third quarter profits for ConAgra Foods are down by 57%. The reason behind this fall is the latest Ralcorp Holdings acquisition. An advantage of this recent acquisition has resulted in ConAgra Foods revenues accelerating, rapidly. However, the stock market is yet to reflect this positive news, as the recent share prices show missed expectations, with the share price slipping down presently.

Third quarter highlights for ConAgra Foods include a downward trend for the EPS as reported, however on a comparable basis it shows a positive trend. Similarly, the profits from consumer food section shows an upward growth through comparison. Base marketing investments show a staggering 33% increase, today.  Due to the current acquisition, there is a 7% increase in the sales segment of ConAgra Foods. On the cards is the improvement in consumer food volume, growth in core business areas, and the proposed opening of Ardent Mills, a joint milling operation venture.

The present focus of the company is on their ongoing acquisition of Ralcorp, which can increase the confidence of shareholders and create the necessary value for them. Initiatives towards improving the margin, with favorable inputs on cost-environment can help increase the brand ‘s investments and facilitate the growth of EPS.

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Published by Fiona Gibson

Fiona is a finance graduate and an expert in analyzing market trends.

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