WHAT TO WATCH FOR: An update on costs and pricing.

ConAgra, like many food companies, is dealing with higher costs for ingredients, packaging and fuel and has raised its prices to offset those increases.

While some companies are starting to see those rising costs level out, ConAgra said in September that it is still facing severe inflation and it is much higher than anticipated. It expects those costs to grow during the year and it will continue to increase its prices.

That's tough for shoppers to swallow as their budgets are already strained. And it could mean weaker sales volume for ConAgra as shoppers shy away from bigger price tags.

ConAgra expects cost inflation of 9 to 10 percent for the year, up from its previous estimate of 7 to 8 percent. This quarter might be another tough one for ConAgra as it has said it doesn't expect its higher prices to help its bottom line until the second half of the year.

ConAgra will also likely update investors on its recent acquisitions.

The Omaha-based company announced in November that it is paying $10 million to an unnamed third party become the majority owner of Indian food company Agro Tech Foods Ltd. as ConAgra looks to broaden its international presence. It completed its acquisition of pretzel maker National Pretzel Co. from Brookstone Holdings earlier this month.

These deals follow its failed attempt earlier this year to acquire Ralcorp Holdings Inc., which makes Post cereal and a variety of store-brand foods.

WHY IT MATTERS: ConAgra is one of the nation's larger food makers and its results shed light on what the industry is facing. Food makers also have a direct impact on how consumers fare in the tough economy as many struggle to pay for necessities such as food.

WHAT'S EXPECTED: Analysts polled by FactSet, on average, expect ConAgra to earn 43 cents per share on revenue of $3.34 billion.

LAST YEAR'S QUARTER: Last year, ConAgra earned $200.9 million, or 45 cents per share, for the quarter on revenue of $3.16 billion.

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