Conagra Brands (NYSE:CAG) Announces Earnings Results

Conagra Brands (NYSE:CAG) released its quarterly earnings data on Wednesday. The company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.13, Zacks reports. Conagra Brands had a positive return on equity of 10.44% and a negative net margin of 16.99%.The business had revenue of $2.60 billion during the quarter, compared to analysts’ expectations of $2.59 billion. During the same period in the prior year, the firm posted $0.39 EPS. The business’s quarterly revenue was down 1.4% compared to the same quarter last year. Conagra Brands updated its FY 2027 guidance to 1.400-1.500 EPS.

Conagra Brands Price Performance

Shares of CAG stock traded down $0.36 during trading hours on Wednesday, hitting $13.77. The company had a trading volume of 2,500,379 shares, compared to its average volume of 14,757,737. Conagra Brands has a 12 month low of $12.53 and a 12 month high of $20.32. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.31 and a current ratio of 0.90. The firm’s fifty day moving average is $15.26 and its 200 day moving average is $14.62. The firm has a market capitalization of $6.59 billion, a price-to-earnings ratio of -3.49 and a beta of -0.01.

Conagra Brands Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Thursday, November 5th will be issued a $0.1750 dividend. This represents a $0.70 annualized dividend and a yield of 5.1%. The ex-dividend date of this dividend is Thursday, November 5th. Conagra Brands’s payout ratio is -17.50%.

Key Headlines Impacting Conagra Brands

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

• Positive Sentiment: Adjusted earnings were $0.41 per share, above the Zacks consensus estimate of $0.31 and up from $0.39 a year ago. Reported diluted EPS was $0.36, while revenue of approximately $2.6 billion narrowly exceeded analysts’ expectations. Resilient demand for pantry staples, including Slim Jim meat snacks, helped support the results. Conagra Brands Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management reaffirmed fiscal 2027 guidance, including adjusted EPS of $1.40 to $1.50, organic sales growth ranging from negative 3% to negative 1%, and an adjusted operating margin of 10.0% to 10.5%. Maintaining the outlook may reassure investors despite the weak sales environment. Conagra Brands Reports First Quarter Results
• Neutral Sentiment: Net income rose 6% to $174 million, but results varied by business. Weakness in the Grocery & Snacks and Refrigerated & Frozen segments contributed to a 1.4% year-over-year sales decline. Investors are likely focused on whether productivity initiatives can offset soft category demand.
• Negative Sentiment: Underlying financial pressures remain: operating profit fell 22.7%, gross profit declined 3.4%, free cash flow was negative $128 million, and net debt stood at $7.4 billion. The combination of falling sales, margin pressure and high leverage appears to have limited the positive reaction to the earnings beat. Conagra Brands Beats First-Quarter Profit and Sales Estimates

Analyst Ratings Changes

CAG has been the topic of a number of recent analyst reports. Royal Bank Of Canada dropped their target price on shares of Conagra Brands from $16.00 to $14.00 and set a “sector perform” rating on the stock in a research report on Thursday, July 16th. Sanford C. Bernstein reiterated an “underperform” rating and issued a $12.00 price objective (down from $16.00) on shares of Conagra Brands in a research note on Wednesday, June 3rd. Barclays increased their price target on shares of Conagra Brands from $16.00 to $17.00 and gave the stock an “overweight” rating in a research note on Friday, July 17th. JPMorgan Chase & Co. boosted their price target on Conagra Brands from $14.00 to $15.00 and gave the company a “neutral” rating in a research report on Thursday, July 16th. Finally, UBS Group increased their price objective on Conagra Brands from $13.00 to $14.00 and gave the stock a “neutral” rating in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and six have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Reduce” and a consensus target price of $14.13.

About Conagra Brands

Conagra Brands, Inc is a packaged food company headquartered in Chicago, Illinois. The company develops, produces and markets branded food products sold through grocery stores, mass merchandisers, club stores, convenience stores, foodservice operators and e-commerce channels.

Its portfolio includes frozen, refrigerated, grocery and snack products. Well-known brands include Birds Eye, Healthy Choice, Marie Callender’s, Banquet, Duncan Hines, Reddi-wip, Slim Jim, Hunt’s, Chef Boyardee, Orville Redenbacher’s, Vlasic, PAM and Angie’s BOOMCHICKAPOP.