ConAgra Analysts Slash Their Forecasts Following Weak Sales

Conagra Brands, Inc. CAG reported worse-than-expected fourth-quarter sales results and issued FY25 adjusted EPS guidance below estimates.

The company reported adjusted earnings per share of 61 cents, beating the analyst consensus estimate of 57 cents. Quarterly revenues of $2.905 billion missed the street view of $2.930 billion, according to data from Benzinga Pro.

"Looking ahead, we expect a gradual waning of the challenging industry trends seen throughout fiscal year 2024, as consumers adapt and establish new reference prices," said Sean Connolly, president and chief executive officer.

ConAgra approved the continuation of the company's annualized dividend rate of $1.40 per share. The company's quarterly dividend payment of $0.35 per share will be paid on August 29 to stockholders of record as of the close of business on August 1.

ConAgra said sees FY25 organic net sales to be down 1.5% to flat compared to fiscal 2024 and adjusted EPS between $2.60 and $2.65 versus the $2.63 estimate. The company's FY25 adjusted operating margin is expected between 15.6% and 15.8%. The company also expects the cost of goods sold inflation to continue into fiscal 2025.

ConAgra shares fell 1.5% to close at $28.38 on Thursday.

These analysts made changes to their price targets on ConAgra after the company reported quarterly results.

• Stifel analyst Matthew Smith maintained Conagra Brands with a Hold and lowered the price target from $32 to $30.
• Evercore ISI Group analyst David Palmer maintained Conagra Brands with a Neutral and slashed the price target from $32 to $31.

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