Conagra Brands Inc (NYSE:CAG) shares were on the uptick in pre-market deals after the company raised its 2018 outlook following market-beating quarterly earnings.
In a statement, the branded food company, said net income for the quarter to February 25 rose to US$362.8mln or 90 US cents a share, from US$179.7mln or 41 US cents a share, a year ago.
READ: Conagra Brands first quarter sales beat estimates, reiterates full year guidance
Excluding non-recurring items, including lower tax from the US tax reform, adjusted earnings per share came to 61 US cents, beating market forecasts for 56 US cents.
In the quarter, revenue rose to US$1.995bn from the US$1.981bn recorded a year before, below market expectations for US$2.000bn.
Better-than-expected revenue from its refrigerated and frozen and international segments offset in-line results from its foodservice segment and a miss in its grocery and snacks business.
The company, which sells brands such as Hunt's, Reddi-wip and Slim Jim, has also upgraded its fiscal 2018 adjusted EPS outlook to US$2.03 to US$2.05 from its previous guidance of "near the high end" of US$1.84 to US$1.89.
Sean Connolly, president and CEO said: "Overall, our transformation plan remains squarely on track. We continue to invest to drive brand saliency, enhanced distribution, and consumer trial in the face of higher inflation on input and transportation costs, which is pressuring near-term margins."
In pre-market trading, its shares were up 1.84% at US$35.99.