Food company, ConAgra Foods, Inc.(CAG) will present to the Consumer Analyst Group of New York on Tuesday to discuss the company’s strategies for growth.
ConAgra will discuss growth opportunities in core/adjacencies, private label, and international markets. The company’s most recent accomplishment was the acquisition of food product company, Ralcorp which was finalized on January 29.
Included in the company’s plan for growth, CAG will focus on eliminating debt which was obtained from the Ralcorp acquisition. ConAgra will aim with reduce the debt by the end of 2015, but still plans on maintaining its $1 annualized dividend. The company reported that it plans to raise dividends once the debt is paid off.
Looking ahead, the company said that it expects that the acquisition will add approximately 5 cents per share to FY2013 earnings. In total, the company is expecting to see EPS for FY2013 to be $2.15 per share. Analysts expect the company to earn $2.13 per share.
For FY2014, the company is expecting the acquisition to add 25 cents per share. CAG said that it will offer further FY2014 predictions following its Q4 2013 earnings release.
Gary Rodkin, CEO of ConAgra Foods commented, “this is a great time to be a part of ConAgra Foods. The profitability of our core business is showing strong progress, and we have recently completed the largest acquisition in our history with the purchase of Ralcorp. The transaction is financially and strategically compelling and creates a company with $18 billion in net sales and the leading position in North America in private brands. We have already begun the integration process, and look forward to reporting on our progress over the next few months.”
ConAgra Foods shares were mostly flat during premarket trading Tuesday. The stock has increased 27% in the past year.
The Bottom Line
Shares of ConAgra Foods, Inc.(CAG) have a 2.96% yield, based on Friday’s closing price of $33.73.
ConAgra Foods, Inc.(CAG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.