Conagra Brands, Inc. (NYSE:CAG) Surpasses Earnings Estimates

• ConAgra Brands Inc. (NYSE:CAG) reported an EPS of $0.51, missing estimates by $0.01 and marking a decline from the previous year's $0.69.
• Revenue reached $2.84 billion, slightly below the expected $2.86 billion, with a notable year-over-year decrease from $3.03 billion.
• Despite challenges, including a decline in sales across key segments and supply-chain disruptions, ConAgra's fiscal 2025 guidance remains unchanged.

ConAgra Brands Inc. (NYSE:CAG), a leading packaged foods company known for brands like Slim Jim and Duncan Hines, reported its earnings on April 3, 2025. The company announced earnings per share (EPS) of $0.51, slightly missing the estimated $0.52. Revenue was reported at $2.84 billion, just under the anticipated $2.86 billion, reflecting challenges in meeting market expectations.

The reported EPS of $0.51 also marks a decline from the $0.69 per share in the same quarter the previous year, as highlighted by Zacks. This drop in earnings, along with a decrease in net sales from $3.03 billion to $2.84 billion, contributed to a decline in ConAgra's share price in premarket trading. Analysts had predicted a slightly higher EPS of $0.53 and sales of $2.90 billion.

ConAgra's grocery and snacks unit experienced a 3.2% year-over-year decline in sales, while the refrigerated and frozen foods segment saw a 7.2% drop. These declines were attributed to lower prices and volume, as well as supply-chain disruptions that affected the company's ability to meet consumer demand. CEO Sean Connolly noted that shipments lagged behind consumption due to supply constraints announced in February.

Despite these challenges, ConAgra's fiscal 2025 guidance remains unchanged. The company is working on restoring inventory and improving customer service levels. ConAgra's financial metrics include a price-to-earnings (P/E) ratio of approximately 25.79 and a price-to-sales ratio of about 1.06, indicating the market's valuation of its sales. The debt-to-equity ratio is 0.96, suggesting a balanced approach to leveraging debt, though the current ratio of 0.70 may indicate potential liquidity concerns.

• Conagra Brands, Inc. (NYSE:CAG) is expected to report a decline in both revenue and earnings for the third quarter of fiscal 2025, with an anticipated EPS of $0.52 and revenue of $2.89 billion.
• The company faces operational challenges, including supply chain disruptions and cost inflation, which are likely to impact its profitability.
• Conagra's financial metrics reveal a P/E ratio of approximately 25.81, a debt-to-equity ratio of about 0.96, and potential liquidity challenges with a current ratio of approximately 0.70.

Conagra Brands, Inc. (NYSE:CAG) is a leading packaged foods company known for its wide range of products, including frozen, refrigerated, and shelf-stable foods. The company operates in a competitive market alongside other major players like General Mills and Kraft Heinz. Conagra's diverse portfolio includes well-known brands such as Healthy Choice, Marie Callender's, and Slim Jim.

On April 3, 2025, Conagra is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $0.52 and projected revenue of approximately $2.9 billion. However, the Zacks Consensus Estimate indicates a decline in both revenue and earnings for the third quarter of fiscal 2025. Revenue is expected to decrease by 4.7% from the same quarter last year, reaching $2.89 billion.

The anticipated EPS of $0.52 represents a significant year-over-year decline of 24.6%. Over the past month, the consensus EPS estimate has been revised downward by 2.1%, reflecting analysts' reassessment of their initial projections. These revisions are important as they can influence investor behavior and impact the stock's short-term price performance.

Conagra has faced several operational challenges, including supply chain disruptions and foreign exchange impacts, which are likely to affect its performance. The company has also been grappling with cost inflation, particularly in protein costs and input inflation, which have been detrimental to its profitability. The Foodservice unit has been under pressure due to these rising costs.

Conagra's financial metrics provide insight into its market valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 25.81 and a price-to-sales ratio of about 1.06. The enterprise value to sales ratio is around 1.77, while the enterprise value to operating cash flow ratio is approximately 11.03. The debt-to-equity ratio stands at about 0.96, indicating a balanced approach to leveraging debt versus equity. However, the current ratio of approximately 0.70 may suggest potential liquidity challenges in meeting short-term obligations.

Conagra Brands, Inc. (NYSE:CAG) is a major player in the packaged foods industry, known for its wide range of products including frozen, refrigerated, and shelf-stable foods. As the company prepares to release its quarterly earnings on December 19, 2024, analysts are keenly observing its financial metrics. The expected earnings per share (EPS) is $0.68, with projected revenue of $3.15 billion.

Beyond these headline figures, Conagra's financial ratios provide a deeper insight into its performance. The company's price-to-earnings (P/E) ratio is 27.03, which shows the price investors are willing to pay for each dollar of earnings. This is a crucial metric for investors assessing the company's valuation relative to its earnings.

Conagra's price-to-sales ratio is 1.12, indicating that investors are paying $1.12 for every dollar of sales. This ratio helps investors understand how much they are paying for the company's sales, which is important for evaluating its revenue-generating efficiency. Additionally, the enterprise value to sales ratio of 1.84 reflects the company's total valuation compared to its sales.

The enterprise value to operating cash flow ratio stands at 11.93, highlighting how the company's valuation compares to its cash flow from operations. This ratio is important for assessing the company's ability to generate cash from its operations. The earnings yield of 3.70% further provides insight into the percentage of each dollar invested that was earned by the company.

Conagra's debt-to-equity ratio is 1.01, suggesting a balanced mix of debt and equity in financing its operations. This ratio is crucial for understanding the company's financial leverage. Lastly, the current ratio of 0.94 indicates the company's ability to cover its short-term liabilities with its short-term assets, which is essential for assessing its liquidity position.

ConAgra Brands (NYSE:CAG) reported disappointing first-quarter fiscal 2025 results, falling short of Wall Street expectations as the company faced inflationary pressures and temporary manufacturing disruptions. The stock dropped 8% intra-day today following the earnings announcement.

The food company posted earnings per share of $0.53, missing the Street consensus of $0.59. Revenue came in at $2.79 billion, below expectations of $2.84 billion and representing a 3.8% year-over-year decline.

ConAgra pointed to manufacturing disruptions during the crucial grilling season, estimating that these issues negatively impacted results by about $27 million. Additionally, the company faced challenges from rising costs and unfavorable operating leverage.

The company reaffirmed its full-year fiscal 2025 guidance, projecting organic net sales to be between -1.5% and flat compared to fiscal 2024, with an adjusted operating margin of 15.6% to 15.8% and adjusted EPS between $2.60 and $2.65.

Gross margin for the quarter fell by 189 basis points to 26.5%, with the Refrigerated & Frozen segment seeing the steepest decline. The segment's operating profit dropped 11.6% to $176 million.

Conagra Brands (NYSE:CAG) shares rose by 5% intra-day today, following the announcement of fiscal Q3/24 results that exceeded market expectations.

The company announced earnings per share of $0.69, surpassing the predicted $0.64. Its quarterly revenue reached $3.03 billion, exceeding the forecast of $3.01 billion. Although the adjusted operating margin dipped slightly to 16.4% from the previous year's 16.9%, it was still higher than the expected 15.7%.

Looking forward, Conagra adjusted its full-year 2024 earnings per share guidance to a range of $2.60 to $2.65, compared to the analysts' predictions of $2.60. Furthermore, the company anticipates a 1-2% drop in organic net sales.

ConAgra Foods (NYSE:CAG) released its first-quarter results, and the numbers were a mixed bag. While the earnings per share (EPS) stood at $0.66, surpassing the anticipated $0.60 according to analysts, the company's quarterly revenue was $2.9 billion, slightly below the expected $2.96 billion.

Grocery & Snacks net sales reached $1.20 billion, showing a modest 1.2% increase compared to the same period last year but falling just short of the estimated $1.21 billion. Meanwhile, Refrigerated & Frozen net sales came in at $1.15 billion, marking a 4.6% decline year-on-year and also missing the estimated $1.22 billion.

Regarding future prospects, ConAgra Foods projects that its full-year 2024 EPS will range from $2.70 to $2.75, which is slightly above the Street estimate of $2.71.