Group 1: Conagra Brands, Inc. - Conagra Brands trades at 10 times earnings with a 7.5% yield, indicating it may be oversold [1] - The company reported net sales of $2.63 billion, a decline of 5.8% year-over-year, and adjusted earnings per share of 39 cents, down 26.4% [2] - Wall Street analysts had expected net sales of $2.62 billion and earnings of 33 cents per share, showing that Conagra's results exceeded expectations despite the declines [2] Group 2: Veeva Systems Inc. - Veeva Systems broke out above $300, with shares gaining 2.2% to close at $306.22 [2][6] - TD Cowen analyst upgraded Veeva Systems from Hold to Buy and raised the price target from $297 to $380 [3] Group 3: PG&E Corporation - PG&E Corporation faced a significant drop earlier this year due to wildfires, but its liabilities are not as severe as the market anticipated, and it has good momentum [3] - PG&E is scheduled to hold a conference call on October 23 to discuss its third-quarter results [4] - PG&E shares gained 1% to settle at $16.20 during the session [6] Group 4: EQT Corporation - EQT was named as a final trade amid a recent surge in natural gas prices [4] - EQT plans to issue its third-quarter financial and operating results news release after the closing bell on October 21 [4] - EQT shares fell 0.1% to settle at $57.16 [6]

Group 1 - Viva Systems has recently broken out above the $300 mark, indicating strong market performance and potential for further gains [1] - Pacific Gas and Electric, a California utility, faced significant market pressure due to wildfires earlier this year, but its liabilities are now seen as manageable, suggesting a recovery opportunity [2] - Kagra, a consumer staples company, is trading at 10 times earnings with a yield of 7.5%, indicating it may be oversold and presenting a potential investment opportunity [2] Group 2 - Natural gas prices have been rising, and EQT is identified as a key player to capitalize on this trend, suggesting a bullish outlook for the company [3]

Core Viewpoint - Conagra Brands is positioned as a buy in October due to successful turnaround efforts, with expectations for growth, margin expansion, and capital return [1] Financial Performance - FQ1 revenue was $2.63 billion, a 5.7% decline year-over-year, primarily due to divestitures and portfolio reshaping [4] - Organic revenue declined by less than 1%, with volume shrinkage offsetting price and mix increases [4] - Adjusted earnings contracted by 26%, but were approximately 1900 basis points above MarketBeat's consensus [5] Margin and Debt - Gross and operating margin contraction was less severe than anticipated, leaving the company in a stronger position [5] - Long-term debt is less than 1x equity, indicating a healthy financial position capable of sustaining capital returns [6] Analyst Outlook - The 12-month stock price forecast is $21.92, indicating a 14.86% upside potential [8] - Institutional ownership is nearly 85%, with buying activity outpacing selling at a rate of greater than $2.50 to $1 [9] Market Trends - Recent price action suggests a bottoming market, with a 3% price increase confirming a bullish trend [10] - The stock is expected to rise to the $20 to $21.50 range as market consolidation occurs [11]

Group 1 - Conagra Brands, Inc. (NYSE:CAG) is recognized for its solid brand portfolio, including Birds Eye, Hunt's, and BOOMCHICKAPOP, which are household names in the packaged food industry [1][2] - The company currently offers a high dividend yield of 7.6%, raising concerns among investors about the sustainability of this return [1] - The stock market sentiment indicates skepticism regarding Conagra's ability to maintain its dividend at current levels, despite the attractive yield [1] Group 2 - Conagra Brands operates in the packaged foods sector, producing and marketing products across grocery, frozen, and foodservice categories [2] - There is a comparison made with AI stocks, suggesting that while Conagra has potential, certain AI stocks may present greater upside potential and lower downside risk [3]

Market Overview - The U.S. stock market showed resilience on October 2, 2025, with major indexes closing at or near record highs despite a government shutdown [1][3] - Investor confidence was driven by strong demand for artificial intelligence (AI) innovations and expectations of future interest rate cuts by the Federal Reserve [1][3] Market Indexes Performance - The S&P 500 closed at 6,721.20, a 0.14% increase, marking a new all-time high [2] - The Nasdaq Composite finished at 22,831.05, up 0.33%, also achieving a new all-time high [2] - The Dow Jones Industrial Average closed at 46,547.37, posting a 0.23% gain [2] Economic Data and Events - The ongoing government shutdown has delayed key economic data releases, including the jobs report, complicating Federal Reserve decision-making [4][5] - Upcoming economic indicators include the Services PMI and ISM Non-Manufacturing PMI, which will provide insights into the service sector [5] Sector Performance Technology Sector - Nvidia (NVDA) shares rose 1.59% to an all-time high of $188.59, driven by robust AI demand [7] - Microsoft (MSFT) increased by 1.45%, benefiting from strong growth in cloud services and AI initiatives [7] - The global chip sector saw gains following a partnership announcement between OpenAI and South Korean firms, with OpenAI valued at $500 billion [8] - Advanced Micro Devices (AMD) and Broadcom (AVGO) gained approximately 3.5% and 2% respectively, driven by demand for data center and AI chips [9] Automotive Sector - Tesla (TSLA) shares declined 3.5% despite better-than-expected delivery figures [10] - Stellantis (STLA) saw an 8% increase in stock price after reporting a 6% rise in U.S. sales for Q3, with a notable 16% jump in September sales [10] Other Notable Company News - Nike (NKE) shares rose 1.56% after reporting Q1 fiscal 2026 revenues of $11.72 billion, surpassing estimates [11] - Conagra Brands, Inc. (CAG) shares jumped 5.4% after reporting adjusted earnings that beat consensus estimates [12] - Fair Isaac (FICO) rallied 20% after introducing a new pricing option for mortgage lenders, negatively impacting major credit agencies [13]

Conagra Brands Inc. (NYSE:CAG) turned in results that beat Wall Street’s low bar, even as sales and profits slipped. The food giant reaffirmed its full-year outlook, betting on pricing power and steadier supply chains to offset rising costs. But with tariffs and protein inflation tightening the squeeze, Conagra’s near-term path looks choppy, setting the stage for a high-stakes test in the back half of the year. Also Read: Conagra Reaffirms Outlook Even As Tariffs Add To Inflation The company reported fis ...

Core Insights - Conagra Brands, Inc. reported first-quarter fiscal 2026 results with both revenue and earnings exceeding Zacks Consensus Estimates, although both metrics showed a year-over-year decline [1][12] Financial Performance - Adjusted earnings per share (EPS) were 39 cents, surpassing the Zacks Consensus Estimate of 33 cents, but reflecting a 26.4% decline year over year [2] - Net sales totaled $2,632.6 million, down 5.8% year over year, yet exceeding the Zacks Consensus Estimate of $2,609 million [3] - Organic net sales decreased by 0.6%, with a 0.6% positive impact from price/mix offset by a 1.2% decline in volume [4] Profitability Metrics - Adjusted gross profit fell 11.3% to $644 million, with adjusted gross margin contracting 153 basis points to 24.4% [5] - Adjusted EBITDA was $441 million, down 16.4% year over year [6] Segment Performance - Grocery & Snacks segment reported net sales of $1,079.6 million, down 8.7% year over year, driven by a 7.7% adverse impact from M&A [7] - Refrigerated & Frozen segment saw net sales decrease by 0.9% year over year to $1,076.2 million, reflecting a 1.1% headwind from M&A [8] - International segment's net sales declined 18% year over year to $212.3 million, missing estimates due to a 13.2% unfavorable impact from M&A [9] - Foodservice segment reported sales of $264.5 million, down 0.8% year over year, with a 1.0% headwind from M&A [10] Financial Health - The company ended the quarter with cash and cash equivalents of $698.1 million and long-term debt of $7,222.6 million [13] - For fiscal 2026, Conagra projects EPS between $1.70 and $1.85 and organic growth between -1% and 1% [12][15] Dividend Declaration - Conagra declared a quarterly dividend of 35 cents per share, payable on November 26, 2025 [14]

Core Insights - Conagra Brands reported a double beat in its fiscal first quarter of 2026, leading to a share price increase of over 5%, outperforming the S&P 500's 0.3% rise [1] Financial Performance - Conagra's net sales decreased by nearly 6% year over year to $2.63 billion, attributed mainly to merger and acquisition activities, but slightly exceeded the average analyst estimate of $2.62 billion [2] - Non-GAAP adjusted net income fell by 25% to $189 million ($0.39 per share), influenced by the sales decline and loss of profits from divested businesses, yet surpassed the consensus projection of $0.33 per share [3] Strategic Actions - The company has been actively divesting assets, including the sale of the Chef Boyardee brand and other prepared food brands to different companies [4] Future Guidance - Conagra maintained its full-year guidance for fiscal 2026, expecting organic net sales growth to decline by 1% to increase by 1% compared to 2025, with adjusted earnings per share projected between $1.70 and $1.85 [5]

PART I [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents Conagra Brands' unaudited Q1 FY26 and Q1 FY25 consolidated financial statements and detailed notes [Unaudited Condensed Consolidated Statements of Earnings](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Earnings) | Metric (in millions) | Thirteen Weeks Ended August 24, 2025 | Thirteen Weeks Ended August 25, 2024 | Change (%) | | :------------------- | :----------------------------------- | :----------------------------------- | :--------- | | Net sales | $2,632.6 | $2,794.9 | (5.8%) | | Gross profit | $640.6 | $739.3 | (13.4%) | | Operating profit | $347.4 | $401.6 | (13.5%) | | Net income | $164.5 | $466.9 | (64.8%) | | Diluted EPS | $0.34 | $0.97 | (64.9%) | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section details Conagra Brands' comprehensive income, including net income and other comprehensive income components | Metric (in millions) | Thirteen Weeks Ended August 24, 2025 | Thirteen Weeks Ended August 25, 2024 | Change (%) | | :------------------- | :----------------------------------- | :----------------------------------- | :--------- | | Net income | $164.5 | $466.9 | (64.8%) | | Comprehensive income | $164.9 | $524.3 | (68.6%) | - Unrealized currency translation gains shifted from a loss of **$19.3 million** in Q1 FY25 to a gain of **$1.1 million** in Q1 FY26[11](index=11&type=chunk) [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section presents Conagra Brands' financial position, including assets, liabilities, and equity, as of August 24, 2025, and May 25, 2025 | Metric (in millions) | August 24, 2025 | May 25, 2025 | Change (%) | | :------------------- | :-------------- | :----------- | :--------- | | Cash and cash equivalents | $698.1 | $68.0 | 926.6% | | Inventories | $2,258.2 | $2,048.3 | 10.2% | | Total current assets | $3,840.1 | $3,071.0 | 24.9% | | Total assets | $21,172.8 | $20,933.9 | 1.1% | | Total current liabilities | $3,629.6 | $4,317.0 | (15.9%) | | Senior long-term debt | $7,222.6 | $6,234.1 | 15.9% | | Total liabilities | $12,257.0 | $12,001.2 | 2.1% | | Total stockholders' equity | $8,915.8 | $8,932.7 | (0.2%) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines Conagra Brands' cash inflows and outflows from operating, investing, and financing activities for Q1 FY26 and Q1 FY25 | Metric (in millions) | Thirteen Weeks Ended August 24, 2025 | Thirteen Weeks Ended August 25, 2024 | Change (%) | | :------------------- | :----------------------------------- | :----------------------------------- | :--------- | | Net cash flows from operating activities | $120.6 | $268.6 | (55.1%) | | Net cash flows from investing activities | $502.0 | $(286.3) | 275.3% | | Net cash flows from financing activities | $7.2 | $70.1 | (89.7%) | | Net change in cash and cash equivalents | $630.1 | $51.0 | 1135.5% | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements [1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=8&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The Company's financial statements are prepared in accordance with U.S. GAAP, with no significant changes to accounting policies from the prior fiscal year - No significant changes to accounting policies from the prior fiscal year were reported[18](index=18&type=chunk) - The FASB issued **ASU 2023-09** (Improvements to Income Tax Disclosures), **ASU 2024-03** (Disaggregation of Income Statement Expenses), and **ASU 2025-06** (Intangibles – Goodwill and Other – Internal-Use Software), which the Company is analyzing for impact and plans to adopt in fiscal **2026**, **2027**, and **2028**, respectively[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) [2. ACQUISITIONS](index=8&type=section&id=2.%20ACQUISITIONS) In Q1 FY25, Conagra Brands completed two acquisitions: a contract manufacturer and Sweetwood Smoke & Co., resulting in significant goodwill allocations - In July 2024, Conagra acquired the manufacturing operations of an existing contract manufacturer for **$51.2 million**, with approximately **$46.3 million** classified as goodwill[22](index=22&type=chunk) - In August 2024, the Company acquired Sweetwood Smoke & Co. for **$179.4 million**, allocating approximately **$130.0 million** to goodwill and **$61.3 million** to intangible assets[23](index=23&type=chunk) - Goodwill from these acquisitions is primarily attributable to anticipated synergies, future growth opportunities, and other non-separately recognized intangibles, with results included in the Grocery & Snacks segment[24](index=24&type=chunk)[25](index=25&type=chunk) [3. DIVESTITURES AND ASSETS HELD FOR SALE](index=10&type=section&id=3.%20DIVESTITURES%20AND%20ASSETS%20HELD%20FOR%20SALE) Conagra Brands completed the sale of its Chef Boyardee® business and frozen fish business in Q1 FY26, recognizing a net gain on divestitures - Completed the sale of Chef Boyardee® business for net proceeds of **$601.2 million**, recognizing a gain of **$42.8 million**[26](index=26&type=chunk) - Completed the sale of the frozen fish business (Van De Kamp's® and Mrs. Paul's® brands) for net proceeds of **$42.4 million**, recognizing a loss of **$0.4 million**[28](index=28&type=chunk) - In Q1 FY25, sold **51.8%** ownership in Agro Tech Foods Limited (ATFL) for **$76.8 million**, recognizing a loss of **$2.3 million** and releasing **$79.8 million** in currency translation losses[30](index=30&type=chunk) [4. RESTRUCTURING ACTIVITIES](index=12&type=section&id=4.%20RESTRUCTURING%20ACTIVITIES) Conagra Brands continued its restructuring plan to improve SG&A effectiveness and supply chain optimization, recognizing **$4.4 million** in charges during Q1 FY26 - The Conagra Restructuring Plan, aimed at improving SG&A effectiveness and supply chain optimization, has approved **$349.0 million** in costs since fiscal 2019, with **$325.6 million** recognized cumulatively[34](index=34&type=chunk) | Expense Category (in millions) | Q1 Fiscal 2026 Charges | | :----------------------------- | :--------------------- | | Total cost of goods sold | $0.7 | | Total SG&A | $3.7 | | **Total** | **$4.4** | - As of August 24, 2025, the balance of liabilities recorded for the restructuring plan was **$13.8 million**[36](index=36&type=chunk) [5. DEBT AND REVOLVING CREDIT FACILITY](index=12&type=section&id=5.%20DEBT%20AND%20REVOLVING%20CREDIT%20FACILITY) In Q1 FY26, Conagra issued **$1.0 billion** in senior unsecured notes and prepaid **$500 million** in term loans, reducing net interest expense - Issued **$500.0 million** of **5.00%** senior unsecured notes due August 1, 2030, and **$500.0 million** of **5.75%** senior unsecured notes due August 1, 2035[37](index=37&type=chunk) - Prepaid **$500.0 million** in aggregate principal amount of unsecured term loans using divestiture proceeds and new note issuances[38](index=38&type=chunk)[39](index=39&type=chunk) | Metric (in millions) | Thirteen Weeks Ended August 24, 2025 | Thirteen Weeks Ended August 25, 2024 | Change (%) | | :------------------- | :----------------------------------- | :----------------------------------- | :--------- | | Net interest expense | $93.8 | $105.8 | (11.4%) | [6. FINANCING ARRANGEMENTS](index=14&type=section&id=6.%20FINANCING%20ARRANGEMENTS)

Core Insights - Conagra Brands Inc. shares increased by approximately 2% following the release of first-quarter fiscal 2026 results that surpassed earnings expectations despite inflationary pressures and cautious consumer spending [1] Financial Performance - The company reported adjusted earnings of $0.39 per share for the quarter ending August 24, exceeding the analyst consensus of $0.33 [2] - Revenue for the quarter was $2.63 billion, slightly above estimates of $2.62 billion, but down 5.8% compared to the previous year; organic net sales decreased by 0.6% [2] Future Outlook - Conagra reaffirmed its fiscal 2026 outlook, projecting organic net sales growth between -1% and +1%, adjusted operating margin of 11.0% to 11.5%, and adjusted EPS between $1.70 and $1.85, aligning with the analyst consensus of $1.78 [3]