10:25 AM EDT, 04/04/2024 (MT Newswires) -- Conagra Brands' ( CAG ) fiscal third-quarter results topped Wall Street estimates as volume trends improved on a sequential basis, while the company reiterated its full-year outlook.

The packaged food maker's adjusted earnings declined to $0.69 a share for the three months through Feb. 25 from $0.76 the year before, surpassing the Capital IQ-polled consensus of $0.65. Sales fell 1.7% to $3.03 billion, but were just ahead of the Street's view. The stock gained 5.5% in Thursday trading.

The company saw negative price impact of 0.2% during the quarter mainly due to the strategic investments it made in the period, while volume dropped 1.8% as a result of lower consumption trends. In the previous quarter, prices and volume were down 0.5% and 2.9%, respectively.

"Volume trends in our domestic retail business continued to improve as targeted investments, particularly in frozen, generated strong lifts and unit share gains," Chief Executive Sean Connolly said in a statement. "Outstanding progress on our cost savings initiatives allowed us to support strategic investments in our brands while sustaining margin recovery."

In the grocery and snacks division, sales rose 3.4% to $1.29 billion driven by higher price mix. Refrigerated and frozen revenue slid 8.1% to $1.2 billion due lower prices and volume. International sales climbed 4.6% to $271.7 million, benefiting from foreign-exchange tailwinds, while foodservice ticked down 1% to $272.8 million.

Adjusted operating margin came in at 16.4%, retreating by 49 basis points on a yearly basis, but up from the previous three-month period's 15.9%. The company lifted its fiscal 2024 adjusted operating margin guidance to about 15.8% from previous projections of 15.6%.

Conagra continues to expect adjusted EPS in a range of $2.60 and $2.65 for the current fiscal year, while the Street is looking for $2.60. The company reaffirmed its full-year organic sales growth of 1% to 2%. "Our long-term focus remains on executing our strategic priorities and generating value for our shareholders," Connolly said.

Price: 30.52, Change: +1.45, Percent Change: +5.01