© Reuters.

Investing.com – ConAgra soared on Wednesday after the food company reaffirmed its full-year guidance and said maintaining its dividend is a “top priority.”

ConAgra Foods (NYSE:), maker of food brands including Birds Eye, Reddi-wip and Slim Jim, maintained its guidance for earnings of between $2.03 and $2.08 per share and a net sales gain of 1%, sending its share price up 6.2%.

Like most food companies, ConAgra is grappling with rising ingredient costs and its efforts to pass them on to shoppers have been thwarted by intense competition.

Most of the ConAgra’s sales growth has been driven by acquisitions, so the company has focused squeezing out that little bit of extra growth by addressing executional challenges at some of its acquired businesses.

And its efforts are seemingly starting to take shape as the food company on Wednesday increased its value capture from synergies estimate to $285 million from $215 million.

Beyond the impact of rising costs, the integration of Pinnacle Foods, acquired in 2018, has weighed on overall gross margins, strangling cash flows, adding to worries that ConAgra’s dividend is vulnerable to a cut.

But the food company vowed to slash debt as it seeks maintain its current dividend, which it said was a “top priority.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link