Conagra Q2 adjusted EPS beats estimates

Overview

• Packaged food maker's fiscal Q2 revenue meets analyst expectations despite a 6.8% decline

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company incurred $968 mln in non-cash goodwill and brand impairment charges

Outlook

• Conagra reaffirms fiscal 2026 guidance with organic net sales change of (1)% to 1%

• Conagra expects fiscal 2026 adjusted EPS between $1.70 and $1.85

• Conagra anticipates total cost of goods sold inflation of approximately 7% in fiscal 2026

Result Drivers

• VOLUME DECLINE - Organic net sales fell 3.0% due to flat price/mix and a 3.0% decrease in volume

• RETAILER ACTIVITY - Net sales impacted by changes in retailer purchasing activity and timing of merchandising events

• SNACKS SHARE GAIN - Co gained volume share in snacks categories, including popcorn and pudding

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 15 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for Conagra Brands Inc is $19.00, about 6.7% above its December 18 closing price of $17.80

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn85tDhLa

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