Conagra Brands is lowering its annual earnings forecasts on cost pressures by Reuters
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© Reuters. PHOTO OF THE FILE: Tins of Boyardee Chef Boy, a product of ConAgra Foods, are on display on the shelf of a grocery store in the Brooklyn neighborhood of New York City on December 16, 2015. REUTERS / Darren Ornitz / File Photo / File Photo
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(Reuters) -Conagra Brands Inc. lowered its full-year profit forecast on Tuesday as the packaged food company expects it to be successful in higher commodity prices and logjam shipments.
The margins of packaged food companies are expected to be pressured in the short term by rising commodity prices, including sugar, wheat and soybeans, as well as higher freight and manufacturing costs due to disruptions in global supply chains.
Shares of Slim Jim beef jerky fell 3.2% in pre-market trading as the company also lowered its annual forecast of adjusted operating margin to 16%.
The company, which sells frozen vegetables, dinners and gourmet popcorn, said it expects earnings adjustment to be around $ 2.50 per share by 2022, an average analyst per share lower than the $ 2.72 estimate, according to Refinitiv IBES data.
Conagra predicted that the annual gain would be $ 2.63 per share and $ 2.73 per share.
Net sales fell 16.7% in the fourth quarter to $ 2.774 billion, but analysts expected them to be above the $ 2.771 billion estimate.
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