Conagra Brands Inc has forecast a 10% to 13% rise in current-quarter organic net sales after beating fourth-quarter estimates on strong demand for its frozen foods and snacks amid coronavirus-led lockdowns.
Demand for packaged foods has continued into the current quarter even as several US states ease lockdowns, with consumers working from home choosing to make their own meals rather than go to restaurants due to fears of contracting the virus.
The Chef Boyardee pasta maker also expects to earn 54 cents to 59 cents per share on an adjusted basis in the first quarter, above Wall Street expectations, offset by decreased demand for its foodservice products and COVID-19-related costs.
Excluding one-time items, the company earned 75 cents per share in the quarter ended 31 May. Net sales rose 25.8% to $3.29 billion.
Analysts were expecting a profit of 66 cents per share and revenue of $3.11 billion, according to IBES data from Refinitiv.
