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

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

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 Down 1.1%

Shares of Conagra Brands stock traded down $0.17 during trading hours on Wednesday, hitting $15.55. The company had a trading volume of 18,914,217 shares, compared to its average volume of 14,409,961. The company’s 50-day moving average is $17.88 and its two-hundred day moving average is $17.77. The company has a market cap of $7.44 billion, a P/E ratio of -70.75 and a beta of -0.02. Conagra Brands has a twelve month low of $15.03 and a twelve month high of $27.68. The company has a debt-to-equity ratio of 0.80, a current ratio of 0.89 and a quick ratio of 0.28.

Conagra Brands Dividend Announcement

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

Analysts Set New Price Targets

Several analysts have weighed in on CAG shares. Evercore dropped their price target on Conagra Brands from $22.00 to $19.00 in a research note on Friday, January 9th. Jefferies Financial Group reduced their price target on Conagra Brands from $16.00 to $15.00 and set a “hold” rating for the company in a research report on Monday. UBS Group reaffirmed a “neutral” rating and issued a $20.00 price target on shares of Conagra Brands in a report on Friday, February 13th. TD Cowen lowered their price target on Conagra Brands from $18.00 to $14.00 and set a “hold” rating on the stock in a research report on Wednesday, March 25th. Finally, Royal Bank Of Canada reduced their target price on Conagra Brands from $22.00 to $20.00 and set a “sector perform” rating for the company in a research note on Monday, December 22nd. One research analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $17.79.

Hedge Funds Weigh In On Conagra Brands

A number of hedge funds and other institutional investors have recently bought and sold shares of CAG. Quarry LP grew its stake in shares of Conagra Brands by 95.8% in the 4th quarter. Quarry LP now owns 5,305 shares of the company’s stock valued at $92,000 after buying an additional 2,595 shares in the last quarter. Brown Brothers Harriman & Co. increased its holdings in shares of Conagra Brands by 41.1% during the 4th quarter. Brown Brothers Harriman & Co. now owns 3,842 shares of the company’s stock worth $67,000 after purchasing an additional 1,120 shares during the period. CIBC Private Wealth Group LLC increased its holdings in Conagra Brands by 43.6% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 4,840 shares of the company’s stock valued at $89,000 after buying an additional 1,470 shares during the period. Wilmington Savings Fund Society FSB increased its stake in Conagra Brands by 50.0% in the third quarter. Wilmington Savings Fund Society FSB now owns 6,725 shares of the company’s stock valued at $123,000 after acquiring an additional 2,241 shares during the period. Finally, Newbridge Financial Services Group Inc. bought a new stake in shares of Conagra Brands during the third quarter valued at approximately $83,000. 83.75% of the stock is currently owned by hedge funds and other institutional investors.

Conagra Brands News Roundup

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.