We have yet another food product to add to the inflation list. This time it's cattle. Cattle futures on the Chicago Mercantile Exchange closed at an all-time high of $1.1752 per pound, as reported in the Wall Street Journal.

Beef is a in a special category. Unlike grains, which are harvested yearly, it takes about three years to raise cattle and bring them to market. High grain prices and high exports have shrunk the size of herds. They are at their lowest levels since the 1950s. With prices so high, some cattle ranchers choose to slaughter their cattle rather than let them mature to full term. These young cattle are called feeder cattle.

Continue reading Cattle Futures Are at a Record High

Cattle Futures Are at a Record High originally appeared on BloggingStocks on Thu, 10 Mar 2011 10:20:00 EST. Please see our terms for use of feeds.

Kroger (KR) isn't far off from its 52-week high. The stock closed Friday at a price of $23.60; the top quote for the year is $24.14. The range has been tight for the shares: the 52-week low is $19.08. Earlier in the week, the supermarket concern posted earnings for the fourth quarter. How were the results?

They weren't bad. According to Reuters, Q4 profit on an adjusted basis came in at 46 cents per share. This turned out to be two pennies ahead of Wall Street's overall estimate. Even better, identical-store sales excluding the effect of fuel transactions increased 3.8%. I'm sure those who own Safeway (SWY) might be a little jealous on the latter count since their company experienced a decline in this metric.

Continue reading Kroger Delivers Good Q4 Results, but Is the Stock a Buy?

Kroger Delivers Good Q4 Results, but Is the Stock a Buy? originally appeared on BloggingStocks on Sat, 05 Mar 2011 12:50:00 EST. Please see our terms for use of feeds.

Safeway (SWY) finished Thursday's session down almost 2% to $21.62 after reporting fourth-quarter financial results. Trading volume was just under triple the 30-day average.

Safeway's bottom line came in at 62 cents per share, a number that was five pennies better than the overall projection, according to Reuters. We'll applaud that performance, but here's something that won't garner any accolades: same-store sales, without the effect of fuel transactions, went down 0.8%.

Continue reading Safeway After Q4 Earnings: Not on My List of Ideas

Safeway After Q4 Earnings: Not on My List of Ideas originally appeared on BloggingStocks on Fri, 25 Feb 2011 11:00:00 EST. Please see our terms for use of feeds.

Winn-Dixie Stores (WINN) issued results for its fiscal second quarter on Monday after the bell. Today, the supermarket chain, which counts Walmart (WMT) as a related stock, is receiving a bid; at the time of this writing, the shares were higher by 2.5% to $6.98. Volume is above average.

The 52-week low for the equity is $5.95 while the 52-week high is $13.90. The one-year chart is not pleasant. Such a downturn in fortune doesn't make the company appealing.

Continue reading Winn-Dixie's Q2 Report: Buy or Sell the Numbers?

Winn-Dixie's Q2 Report: Buy or Sell the Numbers? originally appeared on BloggingStocks on Tue, 15 Feb 2011 18:30:00 EST. Please see our terms for use of feeds.

On Tuesday morning, supermarket entity The Kroger Co. (KR) reported earnings for the second quarter. Today, at the time of this writing, shares were higher by just under 1% to $21.47. Volume wasn't so great, to be honest.

I last wrote about the company back in June, when the Q1 stats were released. The price of the stock at that time was $20.71. I guess this investment idea doesn't want to do a lot of work for its shareholders. The chart seems to indicate that institutions are content with playing the stock in sideways fashion, for now at least.

Continue reading Kroger Up on Q2 News

Kroger Up on Q2 News originally appeared on BloggingStocks on Wed, 15 Sep 2010 16:30:00 EST. Please see our terms for use of feeds.

Continue reading Kroger: Buy or Sell After Q1 News?

Kroger: Buy or Sell After Q1 News? originally appeared on BloggingStocks on Thu, 17 Jun 2010 18:00:00 EST. Please see our terms for use of feeds.

ConAgra Foods (CAG), a company that produces packaged edibles for supermarkets and whose colleagues include Campbell Soup (CPB) and Kraft (KFT), didn't have the kind of quarter you look at and say, "Way to go, management!" It was a boring, steady kind of reporting period.

For the fiscal third quarter, total sales were kind of flat, down a minuscule 0.9%. Earnings from continuing operations on an adjusted basis rose 10% to 44 cents per diluted share. Compared to estimates, that 44-cent stat came in as expected, nothing more, nothing less.

Continue reading ConAgra Produces an Acceptable Quarter

ConAgra Produces an Acceptable Quarter originally appeared on BloggingStocks on Fri, 26 Mar 2010 14:20:00 EST. Please see our terms for use of feeds.

Total sales, without the assistance of fuel transactions, went up 2%. Identical supermarket revenues increased 1.2%. Not too invigorating, certainly, but what about the bottom line? Don't search for comfort there, because per-share profit dropped substantially to 39 cents per diluted share from 53 cents per diluted share in the comparable frame.

Continue reading Kroger Down on Q4 News

Kroger Down on Q4 News originally appeared on BloggingStocks on Tue, 09 Mar 2010 15:40:00 EST. Please see our terms for use of feeds.

This afternoon, I'm going to take a look at earnings releases from two companies in the food industry. One is a maker of a very famous ketchup product, and the other is instrumental in supplying consumers with the tools they need to put together a delicious peanut-butter-and-jelly sandwich.

Let's start with the company responsible for the crimson condiment. H.J. Heinz Company (HNZ) delivered one heck of a report. The summary (of continuing operations), proudly trumpeted at the top of the Q3 release, is indicative of a business hitting on many, if not all, cylinders. Sales grew nearly 13%. Emerging markets were robust. Earnings came in at 83 cents per share, which was 9% higher than the comparable period's bottom line.

Continue reading Two Quarterly Reports from the Food Sector: Heinz and J.M. Smucker

Two Quarterly Reports from the Food Sector: Heinz and J.M. Smucker originally appeared on BloggingStocks on Thu, 25 Feb 2010 17:30:00 EST. Please see our terms for use of feeds.

Del Monte (DLM) had a fine second quarter. Net sales went up by over 6%. Earnings per share more than doubled to 31 cents. Analysts were expecting only 21 cents of per-share profit, according to Earnings.com.

Management seems to be striking a proper balance between pricing strategies and the need for volume growth. That's a tough thing to do, and it can't always be done, but Del Monte is obviously utilizing its brand equity to full advantage. Smart marketing campaigns have helped to highlight the company's trademarks and communicate product value.

Continue reading Del Monte delivers a good second quarter

Del Monte delivers a good second quarter originally appeared on BloggingStocks on Fri, 04 Dec 2009 09:00:00 EST. Please see our terms for use of feeds.

ConAgra Foods (NYSE: CAG) issued Q1 numbers on Tuesday. The market wasn't too impressed by them, but they weren't bad, actually. Net sales were lackluster, I'll admit. They dropped about 3%. Earnings per share from continuing operations, on the other hand, really shined. They increased well over 60% to 38 cents. Net income from continuing operations on a dollar basis soared over 50%.

Even better, that 38-cents-per-share statistic was firmly ahead of Wall Street expectations. According to our earnings preview, analysts were looking for 34 cents per share.

Continue reading ConAgra increases profit in the first quarter

ConAgra increases profit in the first quarter originally appeared on BloggingStocks on Wed, 23 Sep 2009 08:30:00 EST. Please see our terms for use of feeds.

Campbell Soup (NYSE: CPB), a familiar name at the supermarket, reported Q4 earnings on Friday. The top line wasn't so hot as sales declined 11%. There were a few factors to consider with that decline, including currency translation and the issue of there being an extra week in the previous year's comparable quarter. I'm pretty satisfied with the context management provided for the challenged revenue. Also, sales essentially matched expectations, according to our earnings preview, which isn't so bad. The bottom line, however, deserves more than a passing grade. Adjusted earnings per share from continuing operations increased 15% to 30 cents, beating estimates by four pennies.

I like it. Furthermore, I enjoyed that adjusted per-share profit for the full fiscal year also beat forecasts. And you should take a look at the adjusted gross margin for both the quarter and the 12-month period. Campbell's management was able to expand the metric, a feat indicative of efficiencies and pricing strategies, according to the press release.

Continue reading Campbell Soup ends the fiscal year with market-beating earnings

Campbell Soup ends the fiscal year with market-beating earnings originally appeared on BloggingStocks on Sat, 12 Sep 2009 12:10:00 EST. Please see our terms for use of feeds.

Del Monte Foods (NYSE: DLM), a supermarket brand whose colleagues include ConAgra (NYSE: CAG) and Kraft (NYSE: KFT), was way up in afternoon trading. When a stock like Del Monte gains 9% on great volume, you know something big must have happened. Well, it was the company's fiscal Q1 results that made investors want to buy today. After checking over the news, I can honestly say that I see the market's point.

Sales increased 12% during the quarter, and earnings from continuing operations calculated out to 30 cents per share, a huge improvement over the loss observed in the comparable period. According to Earnings.com, Wall Street was only looking for a measly four pennies for the bottom line.

Continue reading Del Monte up big on Q1 data

Del Monte up big on Q1 data originally appeared on BloggingStocks on Thu, 03 Sep 2009 15:00:00 EST. Please see our terms for use of feeds.

Winn-Dixie Stores (NASDAQ: WINN), a grocery chain that competes with Wal-Mart (NYSE: WMT), reported Q4 earnings on Monday after the bell. Shareholders should appreciate the net-income turnaround. The business produced a profit of 17 cents per share, a figure that was one penny ahead of estimates. Winn-Dixie was dealing with a loss of 10 cents per share a year ago.

Same-store sales weren't terribly exciting. They advanced 1.6% (they were driven by the timing of the Easter holiday, it should be noted). Gross margin, however, did increase. And cash flow from operating activities for the twelve-month frame wasn't bad.

Continue reading Winn-Dixie improves its fortunes in Q4

Winn-Dixie improves its fortunes in Q4 originally appeared on BloggingStocks on Tue, 25 Aug 2009 08:30:00 EST. Please see our terms for use of feeds.

The J.M. Smucker Company (NYSE: SJM), a food manufacturer famous for its jelly and baking products, reported a great first quarter on Friday. Adjusted earnings per share increased 12% to 92 cents. According to Reuters, management was able to beat expectations by a whopping 12 cents.

This is quite impressive given the fact that an analyst quoted by Reuters believes that more people eating at home are helping to fuel Smucker's success. I say this because, if people are deciding to dine at home more often, they are most likely doing so because of the recession.

Continue reading J.M. Smucker kills estimates in Q1

J.M. Smucker kills estimates in Q1 originally appeared on BloggingStocks on Sat, 22 Aug 2009 09:10:00 EST. Please see our terms for use of feeds.

H.J. Heinz Company (NYSE: HNZ), a food company that shares space at the supermarket with products from Kraft Foods, Inc. (NYSE: KFT), ConAgra (NYSE: CAG), and Campbell Soup (NYSE: CPB), issued first-quarter data on Thursday. Even though the effect of currency translations continues to put a cloud over the top-line performance, management did end up beating earnings expectations.

Net sales came in flat, and net income was 67 cents per share. Analysts were expecting 5 cents less, according to Earnings.com. Shareholders should be happy about that. When I covered Heinz's last quarter, I noted that expectations were essentially beat by a penny.

Continue reading Heinz wins analyst game in Q1, generates higher level of cash

Heinz wins analyst game in Q1, generates higher level of cash originally appeared on BloggingStocks on Thu, 20 Aug 2009 17:30:00 EST. Please see our terms for use of feeds.

Tyson Foods (NYSE: TSN) really improved its fortunes in Q3. Last year at this time, Tyson earned 3 cents per share. This year, the food company, famous for its chicken brand, made 35 cents per share. Sales actually dipped a little under 3%, but management is diligently fighting the good fight when it comes to efficiencies. Both costs of sales and selling, general and administrative expenses went down.

According to Bloomberg, the adjusted income of 33 cents per share simply blazed past Wall Street's expectations. The call was for 22 cents per share. You've got to like that. Higher prices for poultry helped the quarter.

Continue reading Tyson Foods beats analyst expectations by wide margin

Tyson Foods beats analyst expectations by wide margin originally appeared on BloggingStocks on Tue, 04 Aug 2009 08:00:00 EST. Please see our terms for use of feeds.

The Clorox Company (NYSE: CLX), a famous supermarket brand similar to companies such as Procter & Gamble (NYSE: PG) and Colgate-Palmolive (NYSE: CL), reported Q4 earnings today. Excluding certain factors, Clorox increased its per-share profit by 18% to $1.35.

The dollar continues to wreak havoc on companies with international exposure (there's a whole lot of them, of course). Including currency translations, Clorox's top line was flat. Without the effect (and excluding the impact of a private-label business that the company exited), sales increased 3%. The company utilized price increases to help offset the tough times. Unfortunately, volume decreased 2% during the quarter.

Continue reading Clorox increases prices -- and profit -- in Q4

Clorox increases prices -- and profit -- in Q4 originally appeared on BloggingStocks on Mon, 03 Aug 2009 18:00:00 EST. Please see our terms for use of feeds.

Colgate-Palmolive (NYSE: CL), whose colleagues at the supermarket include companies like Procter & Gamble (NYSE: PG) and Clorox (NYSE: CLX), did all right in the second quarter. Sales were inhibited by currency rates: they dropped by well over 5%. The bottom line, on the other hand, fared a lot better. The company made $1.07 per share compared to 92 cents per share in the year-ago period. However, the previous year's quarter had 6 cents of charges to take into account, so the adjusted earnings in 2008 actually comes out to 98 cents. This makes the growth rate a modest 9%. The market was expecting $1.05 per share according to Earnings.com, so management beat by two pennies.

I was surprised a little by how the stock sold off on Thursday after the earnings report. Shares of Colgate-Palmolive closed down over 5% on very active volume.

Continue reading Colgate-Palmolive beats estimates in Q2

Colgate-Palmolive beats estimates in Q2 originally appeared on BloggingStocks on Fri, 31 Jul 2009 09:00:00 EST. Please see our terms for use of feeds.

The per-share profit compared very favorably to the 18 cents earned in last year's similar quarter. However, in terms of analyst expectations, the performance was relatively unimpressive. Earnings.com indicates that 41 cents is what the market was looking for.

Continue reading ConAgra only meets expectations, but is stock cheap?

ConAgra only meets expectations, but is stock cheap? originally appeared on BloggingStocks on Thu, 25 Jun 2009 15:50:00 EST. Please see our terms for use of feeds.