There's nothing sexy about packaged-food companies, but try telling ConAgra
(NYSE: CAG ) investors not to be a little excited after Tuesday's earnings
"faceoff" with rival General Mills (NYSE: GIS ). ConAgra jumped 4% on
Tuesday after beating Wall Street expectations for its fiscal second quarter.
ConAgra reported a net income decline of 15% from the year-ago period. However,
earnings of 47 cents per share, excluding one-time items, still were four cents
higher than anticipated. ConAgra saw a sales increase of 16% in its commercial
foods segment, mostly on the strength of price hikes, and it also maintained
current guidance for the fiscal year, with growth still expected in the low- to
mid-single digits. General Mills' report wasn't nearly as positive net
income fell 27%, with adjusted earnings of 76 cents per share coming in under
Thomson Reuters I/B/E/S forecasts calling for 79 cents. CEO Don Mulligan said
the acquisition of Yoplait took a toll on gross margins. The company did
maintain guidance at EPS of $2.59 to $2.61. GIS shares dipped less than 1% on
the news. General Mills was in a minority of declining stocks Tuesday, as a
better-than-expected report on U.S. housing starts sparked the markets to life,
sending the Dow Jones up more than 335 points in a pre-Christmas rally that
especially shone on the banking and tech sectors. Big winners included
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