Conagra Brands (NYSE:CAG) Announces Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Conagra Brands (NYSE:CAG) issued its earnings results on Wednesday. The company reported $0.39 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.01), FiscalAI reports. The business had revenue of $2.79 billion during the quarter, compared to analysts’ expectations of $2.76 billion. Conagra Brands had a positive return on equity of 10.59% and a negative net margin of 0.87%.Conagra Brands’s quarterly revenue was down 1.9% compared to the same quarter last year. During the same period last year, the firm posted $0.51 EPS.

Here are the key takeaways from Conagra Brands’ conference call:

• Conagra returned to organic net sales growth of 2.4% in Q3, driven by strong frozen volume recovery and snacks growth that outpaced its category, with frozen regaining meaningful market share after last year’s supply constraints.
• Free cash flow conversion was raised to approximately 105%, supporting plans to reduce net debt by about $800 million, continue investments, and maintain the dividend—underscoring disciplined capital allocation and deleveraging.
• Profitability and earnings fell versus last year: adjusted operating margin declined ~213 basis points to 10.6% and adjusted EPS was $0.39 (down $0.12); FY adjusted EPS guidance was narrowed to the low end (~$1.70), partly due to a $0.10 headwind from the Ardent Mills JV.
• Pricing and mix contributed +1.9% while volumes were up 0.5% in Q3, with management noting inflation-justified pricing across staples and select snack brands where elasticities have been better than historical norms—indicating pricing power but mixed volume dynamics.

Conagra Brands Stock Performance

NYSE CAG traded down $0.10 on Wednesday, reaching $15.62. 14,029,038 shares of the stock were exchanged, compared to its average volume of 14,273,063. The company has a current ratio of 0.89, a quick ratio of 0.28 and a debt-to-equity ratio of 0.80. Conagra Brands has a one year low of $15.03 and a one year high of $27.68. The firm has a market capitalization of $7.47 billion, a PE ratio of -70.96 and a beta of -0.02. The company’s 50-day simple moving average is $17.88 and its two-hundred day simple moving average is $17.77.

Conagra Brands Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Shareholders of record on Thursday, April 30th will be paid a dividend of $0.35 per share. The ex-dividend date is Thursday, April 30th. This represents a $1.40 dividend on an annualized basis and a yield of 9.0%. Conagra Brands’s dividend payout ratio (DPR) is presently -636.36%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. NewEdge Advisors LLC raised its holdings in Conagra Brands by 4.2% during the first quarter. NewEdge Advisors LLC now owns 23,541 shares of the company’s stock valued at $628,000 after acquiring an additional 954 shares during the period. United Services Automobile Association purchased a new stake in shares of Conagra Brands during the first quarter worth about $225,000. Empowered Funds LLC grew its position in shares of Conagra Brands by 5.9% during the first quarter. Empowered Funds LLC now owns 36,356 shares of the company’s stock worth $970,000 after purchasing an additional 2,038 shares in the last quarter. Woodline Partners LP raised its stake in Conagra Brands by 40.7% during the 1st quarter. Woodline Partners LP now owns 40,326 shares of the company’s stock valued at $1,075,000 after purchasing an additional 11,664 shares during the period. Finally, Gamco Investors INC. ET AL lifted its holdings in Conagra Brands by 3.9% in the 2nd quarter. Gamco Investors INC. ET AL now owns 50,450 shares of the company’s stock worth $1,033,000 after purchasing an additional 1,900 shares in the last quarter. Hedge funds and other institutional investors own 83.75% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have recently commented on CAG. Wells Fargo & Company reiterated an “underweight” rating and issued a $15.00 price target (down from $20.00) on shares of Conagra Brands in a research note on Thursday, March 12th. UBS Group restated a “neutral” rating and issued a $20.00 target price on shares of Conagra Brands in a report on Friday, February 13th. TD Cowen cut their target price on shares of Conagra Brands from $18.00 to $14.00 and set a “hold” rating for the company in a research report on Wednesday, March 25th. Bank of America lowered their price target on Conagra Brands from $18.00 to $17.00 and set an “underperform” rating on the stock in a report on Monday, December 22nd. Finally, Royal Bank Of Canada dropped their price target on Conagra Brands from $22.00 to $20.00 and set a “sector perform” rating on the stock in a research note on Monday, December 22nd. One equities research analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $17.79.

More Conagra Brands News

Here are the key news stories impacting Conagra Brands this week:

• Positive Sentiment: Dividend support — The board declared a quarterly dividend of $0.35/share (annualized yield ~8.9%), which may attract income-focused investors and provide a floor under the share price. Dividend Announcement
• Positive Sentiment: Organic sales and category strength — Conagra reported organic sales growth with stronger frozen and snacks volumes, showing demand resilience in key categories despite cost pressures. Zacks: Organic Sales Growth
• Neutral Sentiment: Revenue slightly above estimates — Q3 revenue of $2.79B topped consensus ($2.76B), but revenue was down ~1.9% year‑over‑year, a mixed read for topline momentum. MarketBeat: Revenue/Call
• Negative Sentiment: EPS miss and shrinking margins — Q3 EPS was $0.39 vs. the $0.40 consensus and $0.51 a year ago; management cited margin pressure from rising costs, which is a direct hit to profitability expectations. Zacks: EPS Miss
• Negative Sentiment: Narrowed/trimmed guidance — Management narrowed the annual outlook citing rising costs and a dynamic operating environment, increasing near‑term uncertainty for earnings. Reuters: Guidance Trim
• Negative Sentiment: Analyst price‑target cuts — Jefferies lowered its PT to $15 (hold) and Deutsche Bank cut its target to $14, signaling reduced Street confidence and putting additional pressure on the stock. MarketScreener: Jefferies PT Cut Benzinga: Deutsche PT Cut
• Negative Sentiment: Market commentary on dividend sustainability — Some commentators (e.g., Jim Cramer) suggest the current high dividend may be historically hard to sustain if margins remain pressured, which could weigh on longer‑term sentiment. Yahoo: Dividend Sustainability

Conagra Brands Company Profile

Conagra Brands, Inc is a leading packaged foods company based in Chicago, Illinois, with a broad portfolio of shelf-stable, frozen and refrigerated foods marketed under familiar brands. The company develops, produces and distributes a wide range of consumer food products, serving both retail grocery and foodservice channels. Conagra’s product lineup includes frozen entrees, snacks, condiments, baking goods and desserts, providing convenient meal solutions for consumers across North America and select international markets.

Among its well-known brands are Birds Eye, Healthy Choice, Lean Cuisine, Marie Callender’s and Banquet in the frozen foods category, as well as Hunt’s sauces, Orville Redenbacher’s popcorn, Slim Jim meat snacks and Reddi-wip toppings.