Conagra Brands (NYSE:CAG) Issues Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• Conagra Brands reported a quarterly EPS of $0.39, exceeding estimates by $0.06, although revenue fell 5.8% year-over-year to $2.63 billion.
• The company announced a quarterly dividend of $0.35 per share, representing an annualized yield of 7.7%, with a dividend payout ratio of 58.58%.
• Despite optimistic earnings, analysts' target prices for Conagra Stock have been lowered, with the current consensus rating at "Hold" and an average target price of $21.83.

Conagra Brands (NYSE:CAG - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.06, Zacks reports. Conagra Brands had a return on equity of 12.52% and a net margin of 9.92%.The business had revenue of $2.63 billion for the quarter, compared to analysts' expectations of $2.62 billion. During the same period in the prior year, the firm posted $0.53 EPS. The firm's quarterly revenue was down 5.8% on a year-over-year basis. Conagra Brands updated its FY 2026 guidance to 1.700-1.85 EPS.

Conagra Brands Stock Up 1.4%

Shares of CAG opened at $18.29 on Wednesday. Conagra Brands has a 12-month low of $17.89 and a 12-month high of $32.90. The company has a current ratio of 0.71, a quick ratio of 0.24 and a debt-to-equity ratio of 0.70. The company has a market capitalization of $8.76 billion, a PE ratio of 7.65, a price-to-earnings-growth ratio of 1.73 and a beta of 0.07. The business's 50 day moving average is $18.98 and its 200 day moving average is $21.71.

Conagra Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 26th. Investors of record on Thursday, October 30th will be paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 7.7%. The ex-dividend date of this dividend is Thursday, October 30th. Conagra Brands's dividend payout ratio (DPR) is 58.58%.

Hedge Funds Weigh In On Conagra Brands

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. EP Wealth Advisors LLC grew its stake in Conagra Brands by 3.3% during the second quarter. EP Wealth Advisors LLC now owns 23,984 shares of the company's stock valued at $491,000 after acquiring an additional 772 shares in the last quarter. NewEdge Advisors LLC increased its holdings in shares of Conagra Brands by 4.2% in the first quarter. NewEdge Advisors LLC now owns 23,541 shares of the company's stock worth $628,000 after purchasing an additional 954 shares during the last quarter. CYBER HORNET ETFs LLC purchased a new stake in shares of Conagra Brands in the second quarter worth about $26,000. MUFG Securities EMEA plc purchased a new stake in shares of Conagra Brands in the second quarter worth about $29,000. Finally, Gamco Investors INC. ET AL boosted its stake in Conagra Brands by 3.9% during the second quarter. Gamco Investors INC. ET AL now owns 50,450 shares of the company's stock valued at $1,033,000 after buying an additional 1,900 shares during the last quarter. Institutional investors own 83.75% of the company's stock.

Wall Street Analysts Forecast Growth

CAG has been the subject of several research analyst reports. Stifel Nicolaus reduced their price objective on Conagra Brands from $26.00 to $21.00 and set a "hold" rating for the company in a report on Friday, July 11th. UBS Group decreased their price objective on shares of Conagra Brands from $20.00 to $19.00 and set a "neutral" rating for the company in a report on Wednesday, September 24th. Evercore ISI dropped their target price on shares of Conagra Brands from $24.00 to $23.00 and set an "in-line" rating on the stock in a report on Wednesday, September 24th. Wells Fargo & Company decreased their target price on shares of Conagra Brands from $20.00 to $19.00 and set an "equal weight" rating for the company in a research note on Thursday, September 25th. Finally, JPMorgan Chase & Co. began coverage on Conagra Brands in a research note on Wednesday, August 20th. They issued a "neutral" rating and a $20.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $21.83.

Conagra Brands Company Profile

Conagra Brands, Inc, together with its subsidiaries, operates as a consumer packaged goods food company primarily in the United States. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels.

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