Conagra Brands (NYSE:CAG) Posts Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Conagra Brands beat quarterly expectations, reporting EPS of $0.47 versus the $0.46 consensus estimate, while revenue rose 3.6% year over year. The company’s performance was still weaker than the same quarter last year, when it earned $0.56 per share.
• Management issued a cautious FY2027 outlook, guiding for adjusted EPS of $1.40 to $1.50 and organic net sales down 1% to 3%. The forecast also points to mid-single-digit volume declines, especially in frozen foods, as pricing pressures work through the business.
• Conagra is cutting its dividend by 50% to redirect cash toward debt reduction, brand spending, and supply-chain investment. The company said the move frees about $335 million annually and supports its turnaround strategy under new CEO John Brase.

Conagra Brands (NYSE:CAG - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $0.47 EPS for the quarter, topping the consensus estimate of $0.46 by $0.01, Briefing.com reports. Conagra Brands had a negative net margin of 0.39% and a positive return on equity of 10.15%. During the same quarter in the previous year, the company earned $0.56 earnings per share. The business's quarterly revenue was up 3.6% on a year-over-year basis. Conagra Brands updated its FY 2027 guidance to 1.400-1.500 EPS.

Here are the key takeaways from Conagra Brands' conference call:

• Management outlined a more aggressive turnaround plan under new CEO John Brase, emphasizing “radical simplicity,” stronger brand and supply-chain investment, portfolio simplification, and better capital allocation to drive long-term value.
• Fiscal 2026 results came in within guidance, with full-year organic net sales down 0.4%, adjusted operating margin at 11.3%, and adjusted EPS of $1.72. Fourth-quarter organic sales were flat, though margins and EPS were down year over year.
• Fiscal 2027 guidance implies pressure on growth and earnings, including organic net sales down 1%-3%, adjusted operating margin of 10%-10.5%, and adjusted EPS of $1.40-$1.50. Management also expects mid-single-digit volume declines, especially in frozen, as pricing actions flow through.
• Conagra plans to increase advertising and supply-chain investment, with A&P rising to about 3% of net sales, up 14% year over year, and capital spending increasing to about $550 million. The company said these investments should support key growth brands, service reliability, and modernization.
• The company cut its dividend by 50% to an annualized $0.70 per share, freeing about $335 million of annual cash for debt reduction, brand investment, and supply-chain initiatives. Management said the move improves flexibility and accelerates progress toward its leverage target.

Conagra Brands Stock Performance

CAG opened at $14.17 on Wednesday. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.30 and a current ratio of 0.90. The company has a market cap of $6.78 billion, a PE ratio of -141.72 and a beta of -0.02. The stock has a 50-day moving average of $13.60 and a 200-day moving average of $15.76. Conagra Brands has a 52-week low of $12.53 and a 52-week high of $20.32.

Hedge Funds Weigh In On Conagra Brands

A number of institutional investors have recently modified their holdings of the company. Two Sigma Investments LP grew its position in shares of Conagra Brands by 239.6% in the third quarter. Two Sigma Investments LP now owns 8,347,163 shares of the company's stock valued at $152,837,000 after purchasing an additional 5,889,542 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Conagra Brands by 245.5% in the third quarter. Arrowstreet Capital Limited Partnership now owns 7,734,061 shares of the company's stock worth $141,611,000 after purchasing an additional 5,495,503 shares during the period. AQR Capital Management LLC lifted its position in shares of Conagra Brands by 216.2% during the 3rd quarter. AQR Capital Management LLC now owns 7,459,654 shares of the company's stock worth $135,318,000 after purchasing an additional 5,100,424 shares during the last quarter. Qube Research & Technologies Ltd boosted its stake in Conagra Brands by 241.9% during the 3rd quarter. Qube Research & Technologies Ltd now owns 5,915,490 shares of the company's stock valued at $108,313,000 after purchasing an additional 4,185,486 shares during the period. Finally, Ameriprise Financial Inc. boosted its stake in Conagra Brands by 69.5% during the 2nd quarter. Ameriprise Financial Inc. now owns 10,145,798 shares of the company's stock valued at $207,685,000 after purchasing an additional 4,160,542 shares during the period. Institutional investors own 83.75% of the company's stock.

Trending Headlines about Conagra Brands

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

• Negative Sentiment: Conagra reported fiscal fourth-quarter and full-year results, but the market is focused on softer profitability, which is weighing on the stock. CONAGRA BRANDS REPORTS FOURTH QUARTER AND FULL YEAR RESULTS
• Negative Sentiment: The company swung to a loss in Q4 and reduced its dividend, signaling that management is prioritizing balance-sheet and spending discipline over shareholder returns. Conagra Swings to Loss, Cuts Dividend Under New CEO
• Negative Sentiment: FY2027 EPS guidance of 1.40-1.50 came in below consensus, reinforcing concerns that earnings growth may remain limited amid higher commodity, protein, and tariff-related costs. Conagra Brands Q4 Earnings on the Horizon: Key Factors to Note
• Negative Sentiment: Broader commentary ahead of the release had already highlighted margin pressure and dividend-risk concerns across food stocks, adding to sentiment headwinds for CAG. Conagra and 6 More Food Stock Dividends That Are at Risk
• Neutral Sentiment: Conagra also announced its regular quarterly dividend of $0.175 per share, which helps show the company is still returning cash to shareholders despite the cut. Conagra Brands Announces Quarterly Dividend Payment of $0.175 Per Share

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Wells Fargo & Company cut their target price on shares of Conagra Brands from $14.00 to $13.00 and set an "underweight" rating for the company in a research report on Monday, May 18th. Sanford C. Bernstein reaffirmed an "underperform" rating and issued a $12.00 price target (down from $16.00) on shares of Conagra Brands in a research note on Wednesday, June 3rd. BNP Paribas Exane cut their price objective on Conagra Brands from $16.00 to $14.00 and set a "neutral" rating for the company in a report on Thursday, May 21st. UBS Group reduced their price objective on Conagra Brands from $16.00 to $13.00 and set a "neutral" rating for the company in a research report on Tuesday, June 2nd. Finally, Barclays dropped their target price on Conagra Brands from $18.00 to $16.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Buy rating, eleven have given a Hold rating and six have given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and an average target price of $14.00.

About Conagra Brands

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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