Conagra Brands (NYSE:CAG) Announces Earnings Results

Key Points

• Conagra Brands beat quarterly expectations, reporting $0.41 in EPS versus the $0.28 consensus and $2.60 billion in revenue, slightly above estimates. However, revenue declined 1.4% year over year.
• Management updated fiscal 2027 EPS guidance to $1.40–$1.50, while ongoing weakness in several food segments continues to pressure sales and profitability.
• The company declared a quarterly dividend of $0.175 per share, equivalent to a 5.1% annualized yield. Analysts remain cautious, with a consensus “Reduce” rating and an average price target of $14.13.

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

Conagra Brands Stock Performance

Shares of NYSE CAG traded down $0.36 during trading hours on Wednesday, hitting $13.77. 2,500,379 shares of the stock were exchanged, compared to its average volume of 14,757,737. The firm has a market capitalization of $6.59 billion, a P/E ratio of -3.49 and a beta of -0.01. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.90 and a quick ratio of 0.31. Conagra Brands has a one year low of $12.53 and a one year high of $20.32. The company's 50 day moving average is $15.26 and its 200 day moving average is $14.62.

Conagra Brands Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Investors 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 is Thursday, November 5th. Conagra Brands's payout ratio is -17.50%.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. UBS Group raised their target price on shares of Conagra Brands from $13.00 to $14.00 and gave the company a "neutral" rating in a research note on Thursday, July 16th. Evercore set a $13.00 price objective on shares of Conagra Brands in a research note on Tuesday. Deutsche Bank Aktiengesellschaft upped their target price on Conagra Brands from $12.00 to $13.00 and gave the stock a "hold" rating in a research report on Friday, September 18th. Barclays increased their price target on Conagra Brands from $16.00 to $17.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Conagra Brands in a report on Tuesday, September 22nd. One investment analyst has rated the stock with a Buy rating, eleven have given a Hold rating and six have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average price target of $14.13.

More Conagra Brands News

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

Conagra Brands Company Profile

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.

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