Conagra Brands FY2027 EPS Forecast Reduced by Zacks Research

Key Points

• Zacks Research cut Conagra Brands’ FY2027 EPS forecast to $1.46 from $1.74 and maintained a “Strong Sell” rating. Its FY2028 estimate is $1.50 per share, broadly reflecting weaker earnings expectations.
• Conagra’s latest quarterly EPS of $0.47 slightly exceeded estimates, while revenue of $2.88 billion fell just short of expectations; revenue still increased 3.6% year over year. Management’s FY2027 EPS guidance remains $1.40–$1.50.
• Analyst sentiment remains cautious, with an average “Reduce” rating and a consensus price target of $14.07. The company is paying a quarterly dividend of $0.175, equal to a 4.7% annualized yield.

Conagra Brands (NYSE:CAG - Free Report) - Research analysts at Zacks Research decreased their FY2027 earnings per share estimates for shares of Conagra Brands in a note issued to investors on Wednesday, July 29th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $1.46 for the year, down from their prior estimate of $1.74. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for Conagra Brands' current full-year earnings is $1.45 per share. Zacks Research also issued estimates for Conagra Brands' FY2028 earnings at $1.50 EPS.

Conagra Brands (NYSE:CAG - Get Free Report) last posted its quarterly earnings data on Wednesday, July 15th. The company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.01. The company had revenue of $2.88 billion for the quarter, compared to analysts' expectations of $2.89 billion. Conagra Brands had a negative net margin of 16.99% and a positive return on equity of 10.44%. Conagra Brands's revenue for the quarter was up 3.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.56 earnings per share. Conagra Brands has set its FY 2027 guidance at 1.400-1.500 EPS.

CAG has been the subject of a number of other reports. The Goldman Sachs Group dropped their price objective on shares of Conagra Brands from $17.00 to $15.00 and set a "sell" rating for the company in a report on Thursday, April 2nd. Stifel Nicolaus lowered their price target on Conagra Brands from $17.00 to $15.00 and set a "hold" rating on the stock in a research report on Tuesday, April 21st. Sanford C. Bernstein reaffirmed an "underperform" rating and set a $12.00 price target (down from $16.00) on shares of Conagra Brands in a research note on Wednesday, June 3rd. Weiss Ratings cut Conagra Brands from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, June 25th. Finally, Barclays increased their price objective on Conagra Brands from $16.00 to $17.00 and gave the company an "overweight" rating in a research report on Friday, July 17th. One analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and six have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $14.07.

Conagra Brands Price Performance

Shares of NYSE:CAG opened at $15.02 on Friday. The company's fifty day moving average price is $13.82 and its 200-day moving average price is $15.57. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.90 and a quick ratio of 0.31. The firm has a market capitalization of $7.19 billion, a price-to-earnings ratio of -3.76 and a beta of -0.02. Conagra Brands has a one year low of $12.53 and a one year high of $20.32.

Conagra Brands Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Stockholders of record on Thursday, July 30th will be issued a $0.175 dividend. The ex-dividend date is Thursday, July 30th. This represents a $0.70 annualized dividend and a dividend yield of 4.7%. Conagra Brands's dividend payout ratio (DPR) is currently -35.00%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Bell Investment Advisors Inc boosted its position in Conagra Brands by 156.9% during the 1st quarter. Bell Investment Advisors Inc now owns 1,685 shares of the company's stock valued at $26,000 after buying an additional 1,029 shares during the period. CYBER HORNET ETFs LLC purchased a new stake in shares of Conagra Brands during the second quarter worth about $26,000. Harbour Investments Inc. grew its stake in shares of Conagra Brands by 80.4% in the fourth quarter. Harbour Investments Inc. now owns 1,573 shares of the company's stock worth $27,000 after purchasing an additional 701 shares during the last quarter. MUFG Securities EMEA plc bought a new stake in shares of Conagra Brands in the second quarter worth about $29,000. Finally, Caitong International Asset Management Co. Ltd purchased a new position in Conagra Brands during the 3rd quarter valued at about $33,000. 83.75% of the stock is owned by hedge funds and other institutional investors.

More Conagra Brands News

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

• Positive Sentiment: Zacks Research projects Conagra’s fiscal 2029 earnings at $1.61 per share, above the current-year consensus estimate of $1.45, suggesting potential longer-term earnings improvement if the company stabilizes its business. Conagra Brands analyst estimates
• Neutral Sentiment: Conagra announced that its chief operating officer is retiring and that it will eliminate the COO position. The move could streamline management, although investors may watch for any effect on execution and leadership responsibilities. Conagra Brands retires COO role
• Neutral Sentiment: One analysis said the stock may be fairly valued following its earlier decline, which could limit downside at current levels but offers little immediate catalyst for a stronger re-rating. Conagra stock valuation analysis
• Negative Sentiment: Zacks Research lowered EPS forecasts across multiple periods, including fiscal 2027 first-quarter earnings to $0.32 from $0.40, second-quarter earnings to $0.39 from $0.49, and third-quarter earnings to $0.36 from $0.40. It also cut fiscal 2028 estimates, including fourth-quarter EPS to $0.40 from $0.46, and maintains a “Strong Sell” rating. The broad reductions are the clearest reason for the stock’s decline. Zacks Research Conagra estimates
• Negative Sentiment: Broader consumer-staples commentary points to weakening pricing power as shoppers resist additional price increases. That environment threatens sales growth and margins for Conagra and other packaged-food companies. Consumer staples pricing pressure

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.

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