What to Expect From Conagra Brands' Next Quarterly Earnings Report
Conagra Brands, Inc. (CAG), headquartered in Chicago, Illinois, operates as a consumer-packaged goods food company. Valued at $9.8 billion by market cap, the company offers meals, entrees, condiments, sides, snacks, specialty potatoes, milled grain ingredients, dehydrated vegetables and seasonings, and blends and flavors. The packaged food company is expected to announce its fiscal fourth-quarter earnings for 2025 before the market opens on Thursday, Jul. 10.
Ahead of the event, analysts expect CAG to report a profit of $0.60 per share on a diluted basis, down 1.6% from $0.61 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect CAG to report EPS of $2.33, down 12.7% from $2.67 in fiscal 2024. Its EPS is expected to fall 3.9% year over year to $2.24 in fiscal 2026.
CAG stock has considerably underperformed the S&P 500 Index’s ($SPX) 12.1% gains over the past 52 weeks, with shares down 28% during this period. Similarly, it underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 3.8% gains over the same time frame.
Conagra's underperformance is attributed to lower sales and weaker performance across all segments. Management blames supply constraints limiting shipments to retailers rather than a slowdown in consumer demand. Consumption lagged shipments, and volume is still under pressure due to ongoing supply chain challenges. Furthermore, consumers are turning to private-label brands to offset inflation impact.
On Apr. 3, CAG shares closed up by 1.5% after reporting its Q3 results. Its revenue was $2.8 billion, missing analyst estimates of $2.9 billion. The company’s adjusted EPS of $0.51 fell short of analyst expectations of $0.53.
Analysts’ consensus opinion on CAG stock is cautious, with a “Hold” rating overall. Out of 17 analysts covering the stock, two advise a “Strong Buy” rating, 13 give a “Hold,” one recommends a “Moderate Sell,” and one suggests a “Strong Sell.” CAG’s average analyst price target is $24.41, indicating a potential upside of 19.1% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.