Earnings Outlook For Conagra Brands

Conagra Brands CAG is gearing up to announce its quarterly earnings on Wednesday, 2024-10-02. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Conagra Brands will report an earnings per share (EPS) of $0.59.

The market awaits Conagra Brands's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

Last quarter the company beat EPS by $0.04, which was followed by a 0.11% drop in the share price the next day.

Here's a look at Conagra Brands's past performance and the resulting price change:

Market Performance of Conagra Brands's Stock

Shares of Conagra Brands were trading at $32.52 as of September 30. Over the last 52-week period, shares are up 23.46%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Conagra Brands

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Conagra Brands.

With 7 analyst ratings, Conagra Brands has a consensus rating of Neutral. The average one-year price target is $32.0, indicating a potential 1.6% downside.

Comparing Ratings Among Industry Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Campbell Soup, Hormel Foods and JM Smucker, three key industry players, offering insights into their relative performance expectations and market positioning.

• As per analysts' assessments, Campbell Soup is favoring an Neutral trajectory, with an average 1-year price target of $50.33, suggesting a potential 54.77% upside.
• The prevailing sentiment among analysts is an Buy trajectory for Hormel Foods, with an average 1-year price target of $37.0, implying a potential 13.78% upside.
• The prevailing sentiment among analysts is an Buy trajectory for JM Smucker, with an average 1-year price target of $128.57, implying a potential 295.36% upside.

Analysis Summary for Peers

The peer analysis summary outlines pivotal metrics for Campbell Soup, Hormel Foods and JM Smucker, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Conagra Brands ranks at the bottom for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Delving into Conagra Brands's Background

Conagra Brands is a packaged food company that operates predominantly in the United States (over 90% of fiscal 2024 revenue). Most of its revenue comes from frozen food, including brands like Marie Callender's, Healthy Choice, Banquet, and Birds Eye. Conagra also sells snacks, shelf-stable staples, and refrigerated food through brands like Duncan Hines, Hunt's, Slim Jim, Vlasic, Orville Redenbacher's, Reddi-wip, Wish-Bone, and Chef Boyardee. The company primarily sells through the us retail channel, with just 9% of fiscal 2024 revenue coming from international markets and 10% from foodservice.

Conagra Brands: Delving into Financials

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Conagra Brands's revenue growth over a period of 3 months has faced challenges. As of 31 May, 2024, the company experienced a revenue decline of approximately -2.27%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Net Margin: Conagra Brands's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -19.52%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Conagra Brands's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -6.45%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Conagra Brands's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -2.65%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 1.02, Conagra Brands faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Conagra Brands visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.