ConAgra Foods Expected To Report Single-Digit EPS Growth

ConAgra Foods Inc CAG is scheduled to report its fourth quarter results on Tuesday before the market opens. According to Estimize, the company is expected to deliver 7 to 9 percent year-over-year earnings growth.

In the fourth quarter of 2014, the packaged foods business reported earnings of $0.55 per share on revenue of $4.437 billion. For the current quarter, the Street is modeling consensus earnings of $0.59 per share on revenue of $4.14 billion, while the crowd is projecting consensus earnings of $0.60 per share on sales of $4.167 billion.

The second chart illustrates the evolution of sentiment over time. Both experts and the crowd have become increasingly bearish in relation to ConAgra’s earnings, and estimates now stand at their lowest point.

Related Link: JP Morgan Upgrades ConAgra On 'Highly Attractive' Metric

Barry Rosenstein’s Interest Adds Value

In a report published last Monday, JP Morgan analyst Ken Goldman upgraded ConAgra’s stock from Neutral to Overweight, while raising his price target from $39 to $52. The rating improvement seeks to reflect the importance of Jana Partners’ purchase of a significant stake in ConAgra, and the resulting nomination of three board members.

"We have confidence that Jana will effect positive change, based on a) our experience with them and Safeway, and b) CAG's positive reaction to their presence," Goldman said.