Conagra Brands Prepares for Q3 Earnings Report Amid Challenges

Conagra Brands, Inc. (CAG), based in Chicago, Illinois, is a prominent player in the consumer-packaged goods food sector. With a market capitalization of $12.7 billion, the company provides a variety of food products, including meals, entrees, condiments, sides, snacks, specialty potatoes, milled grain ingredients, dehydrated vegetables, and seasonings. The packaged food company is set to announce its fiscal third-quarter earnings for 2025 before trading starts on Thursday, April 3.

Analysts’ Expectations for Earnings

In anticipation of this earnings report, analysts project that CAG will report a profit of $0.52 per share on a diluted basis. This figure represents a 24.6% decrease from $0.69 per share reported in the same quarter last year. Interestingly, Conagra managed to exceed consensus estimates in three of the last four quarters, although it did fall short once.

Yearly Earnings Projections

For the full fiscal year, analysts expect CAG to report an EPS of $2.35, marking a decline of 12% from $2.67 in fiscal 2024. However, projections for fiscal 2026 suggest a rebound, with EPS expected to rise by 3.8% year over year to $2.44.

Performance Against Market Indices

Over the past 52 weeks, CAG shares have underperformed, with a decline of 10.4% compared to the S&P 500’s ($SPX) 7.4% gains. Additionally, CAG lagged behind the Consumer Staples Select Sector SPDR Fund’s (XLP) 8% growth during the same period.

Challenges Confronting Conagra

Conagra Brands is facing significant hurdles, including rising inflation in essential commodities and strong competition from private-label brands. These factors have contributed to downward revisions in profit estimates and a decrease in sales volumes. Additionally, supply chain disruptions and uncertainties regarding strategic initiatives have further complicated the company’s operations.

Recent Quarterly Results

On December 19, 2024, CAG shares fell more than 2% following the release of its fourth-quarter results. The company’s revenue for the quarter reached $3.20 billion, surpassing analyst expectations of $3.15 billion. Its adjusted EPS stood at $0.70, also exceeding the analyst estimate of $0.67.

Analysts’ Consensus and Future Outlook

Currently, the consensus among analysts regarding CAG Stock is cautious, resulting in an overall “Hold” rating. Out of 16 analysts covering the stock, only two recommend a “Strong Buy,” while 14 suggest a “Hold.” The average price target set by analysts for CAG is $27.31, indicating a potential upside of 2.7% from its 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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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