Conagra Brands, Inc. (NYSE:CAG), a major supplier to supermarkets, foodservice establishments, and consumers, is a stock that we still like as a dividend-paying income name. Shares have stagnated, particularly in recent weeks, but remain at levels we like. We suggested a buy at the start of the year when shares were around $28, for income. We reiterated that call in October when the stock fell into the $20s, and today, we stand by the call and $32 price target. While we wait for conditions to improve for th ...

Key TakeawaysConagra Brands shares slid Thursday after the food giant lowered its profit outlook.CEO Sean Connolly cited a "challenging consumer environment," and said inflation will likely negatively affect Conagra's second-half results.The company's second-quarter sales and adjusted earnings topped analysts' estimates. Conagra Brands (CAG) shares slid Thursday after the food giant lowered its profit outlook, citing a "challenging consumer environment." CEO Sean Connolly said higher-than-expected inflation ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 24, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-7275 Delaware 47-0248710 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Ide ...

Conagra Brands, Inc. (CAG) posted second-quarter fiscal 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate while declining year over year. Despite a difficult consumer landscape, Conagra’s results were driven by strategic investments that delivered robust market share gains. Although momentum remains strong, management anticipates greater-than-expected inflation and adverse foreign exchange rates in fiscal 2025, prompting a revision to its fiscal 2025 guidance.CAG’s Quarterly P ...

For the quarter ended November 2024, Conagra Brands (CAG) reported revenue of $3.2 billion, down 0.4% over the same period last year. EPS came in at $0.70, compared to $0.71 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.14 billion, representing a surprise of +1.61%. The company delivered an EPS surprise of +2.94%, with the consensus EPS estimate being $0.68.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Conagra Brands, Inc. (NYSE:CAG) Q2 2025 Earnings Conference Call December 19, 2024 9:00 AM ET Company Participants Melissa Napier - Head of IR Sean Connolly - CEO David Marberger - CFO Conference Call Participants Melissa Napier Good morning. This is Melissa Napier from Conagra Brands' Investor Relations. Thank you for listening to our prepared remarks for the Conagra Brands second quarter and first half fiscal 2025 earnings. At 9:30 eastern time this morning, we will hold a separate live question-and-answe ...

Q2 FY25 Performance - Conagra's organic net sales increased by 03% compared to the previous year, reaching $3194 million[53, 58] - Adjusted gross margin was 264%, a decrease of 52 basis points year-over-year[53] - Adjusted operating margin was 153%, a decrease of 57 basis points year-over-year[53] - Adjusted EPS decreased by 14% to $070[53] - Domestic retail organic shipments increased by 10%[14] Segment Performance - Grocery & Snacks net sales increased by 12% organically, reaching $1321 million, with a volume increase of 03% and a price/mix increase of 09%[55] - Refrigerated & Frozen net sales remained flat organically at $1339 million, with a volume increase of 19% but a price/mix decrease of 19%[55] - International net sales decreased by 07% organically to $243 million, with a volume decrease of 24% and a price/mix increase of 17%[55] - Foodservice net sales decreased by 10% organically to $292 million, with a volume decrease of 39% and a price/mix increase of 29%[55] Guidance and Outlook - Fiscal Year 2025 organic net sales growth is expected to be between -15% to flat[48] - Fiscal Year 2025 adjusted operating margin is expected to be approximately 148%[48] - Fiscal Year 2025 adjusted EPS is projected to be in the range of $245 to $250[48] - The company is raising its full-year free cash flow conversion estimate to >100%[82]

Conagra Brands (CAG) came out with quarterly earnings of $0.70 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.94%. A quarter ago, it was expected that this company would post earnings of $0.59 per share when it actually produced earnings of $0.53, delivering a surprise of -10.17%.Over the last four quarters, the company ha ...

Financial Data and Key Metrics Changes - Conagra reported organic net sales of $3.2 billion in Q2, reflecting a 30 basis point increase year-over-year, driven by volume growth in the domestic retail business [19] - Adjusted gross margin was 26.4%, and adjusted operating margin was 15.3%, down 52 and 57 basis points respectively compared to the prior year, but up 110 basis points from Q1 [20] - Adjusted earnings per share (EPS) were $0.70, a decrease of $0.01 from Q2 of the previous year [20] Business Line Data and Key Metrics Changes - Grocery and Snacks segment delivered net sales of $1.3 billion, representing 1.2% organic growth driven by increased volumes and favorable price mix [21] - Refrigerated and Frozen segment also reported $1.3 billion in net sales, flat compared to the prior year, with increased volumes offset by negative price mix [21] - International segment saw organic net sales decline by 0.7%, driven by a 2.4% volume decline, partially offset by a 1.7% increase in price mix [21] Market Data and Key Metrics Changes - Conagra's portfolio held or gained volume share in 67% of its categories in Q2, marking the fifth consecutive quarter of share gains [8] - In the frozen and snacks domains, 87% of the portfolio held or gained volume share in Q2 [9] - The company outperformed its closest peer by 24 percentage points in share performance [10] Company Strategy and Development Direction - The company plans to maintain its strategy focused on brand building and innovation, despite economic pressures and inflation [5][17] - Conagra aims to prioritize top-line momentum and consumer loyalty through continued investments in brand building [17] - Limited pricing actions will be implemented to offset rising cocoa and sugar prices while maintaining a disciplined approach to brand management [17][29] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation and unfavorable foreign exchange rates will pressure profitability in the second half of the fiscal year [5][15] - The expectation for inflation relief has been pushed to fiscal 2026, with ongoing economic pressures shaping consumer purchasing decisions [5][15] - The company updated its guidance for fiscal 2025, expecting organic net sales growth near the midpoint of a range of down 1.5% to flat [18][29] Other Important Information - Conagra generated $754 million in net cash flows from operating activities in the first half of fiscal 2025, down from the prior year [26] - The company has repaid over $600 million of debt in the last twelve months, aiming for a long-term net leverage goal of three times by the end of fiscal 2026 [28][31] - The adjusted tax rate is expected to be approximately 23%, down from 23.5% based on year-to-date favorability [31] Q&A Session Summary Question: What are the expectations for organic net sales growth? - The company now expects full-year organic net sales growth to be near the midpoint of the guidance range of minus 1.5% to flat growth versus fiscal 2024 [29] Question: How is the company addressing inflation and foreign exchange impacts? - Limited pricing actions will be taken to offset some inflation in cocoa and sugar, while the company remains committed to brand investments [17][29] Question: What is the outlook for free cash flow conversion? - The company expects full-year free cash flow conversion to be greater than 100%, with stronger performance anticipated in the second half of the year [28][31]

Financial Performance - Reported net sales decreased 0.4% to $3.2 billion, while organic net sales increased 0.3%[4] - Reported diluted earnings per share (EPS) was $0.59, a 1.7% decrease, and adjusted EPS was $0.70, a 1.4% decrease[4] - Net income attributable to Conagra Brands, Inc. for the thirteen weeks was $284.5 million, a slight decrease of 0.6% compared to $286.2 million[43] - Net income attributable to Conagra Brands, Inc. for the twenty-six weeks was $751.3 million, an increase of 24.0% compared to $606.1 million[44] - Basic earnings per share for the twenty-six weeks increased by 23.6% to $1.57 from $1.27[44] - Net income for the quarter ending November 24, 2024, was $751.4 million, an increase from $606.1 million in the same period last year, representing a growth of approximately 24%[46] - Adjusted diluted EPS for Q2 FY25 was $0.70, representing a year-over-year increase of 22.3%[53] - Net income attributable to Conagra Brands, Inc. for Q2 FY25 was $284.5 million, a decrease of 0.6% from $286.2 million in Q2 FY24[67] Sales and Revenue - Net sales for the Grocery & Snacks segment increased 2.0% to $1.3 billion, driven by a 1.2% increase in organic net sales[11] - Net sales for the International segment decreased 12.9% to $243 million, impacted by M&A and foreign exchange[16] - Net sales for the thirteen weeks ended November 24, 2024, were $3,195.1 million, a decrease of 0.4% compared to $3,208.1 million for the same period last year[43] - For the twenty-six weeks ended November 24, 2024, net sales were $5,990.0 million, a decrease of 2.0% from $6,112.1 million[44] - Q2 FY25 total net sales for Conagra Brands reached $3,195.1 million, a year-over-year decrease of 0.4%[47] - Organic net sales for Q2 FY25 were $3,193.7 million, reflecting a 0.3% year-over-year increase[47] - The Grocery & Snacks segment reported net sales of $1,321.0 million, with a year-over-year increase of 2.0%[47] - Year-to-date organic net sales for FY25 totaled $5,970.8 million, with a year-over-year decrease of 1.5%[47] Expenses and Costs - Cost of goods sold for the same period was $2,348.4 million, down 0.6% from $2,361.5 million[43] - Selling, general, and administrative expenses increased by 11.5% to $444.1 million from $398.1 million[43] - The company incurred restructuring plans costs of $83.8 million in Q2 FY25, compared to $27.9 million in Q2 FY24[51] - The company incurred restructuring plans expenses of $79.2 million in Q2 FY25, compared to $0.8 million in Q2 FY24[67] - Brand impairment charges in Q2 FY25 amounted to $18.9 million, with no charges reported in Q2 FY24[67] - Legal matters resulted in expenses of $3.4 million, compared to $14.0 million in the previous year[68] Cash Flow and Debt - Free cash flow decreased by $102 million to $539 million compared to the prior year period[25] - The company ended the quarter with net debt of $8.4 billion, representing a 6.5% reduction in net debt year-over-year[26] - Total debt as of FY25 YTD was $8,463.6 million, with net debt at $8,426.2 million[63] - The company reported net cash flows from operating activities of $754.2 million, down from $854.6 million, a decrease of approximately 11.7%[46] - Free cash flow for FY25 YTD decreased by 15.9% to $538.8 million compared to $640.6 million in FY24 YTD[63] Margins and Profitability - Adjusted operating margin was approximately 14.8% for fiscal 2025 guidance, reflecting a decrease from the previous year[27] - Adjusted operating profit for Q2 FY25 was $490.1 million, with a year-over-year decrease of 4.0%[49] - The operating profit margin for Q2 FY25 was 12.6%, down from 14.0% in Q2 FY24[49] - The operating profit margin for Conagra Brands was 13.4% in Q2 FY25, down from 14.8% in the previous year, indicating a decline of 191 basis points[51] - Conagra Brands reported a total adjusted operating profit of $888.0 million for Q2 FY25, reflecting a year-over-year decrease of 10.7%[51] - The company reported an operating profit of $888.0 million for FY25 YTD, which is 13.4% of net sales[61] Tax and Interest - The effective tax rate was 17.8%, reflecting a $14.4 million tax benefit from the release of reserves on unrecognized tax benefits[23] - Net interest expense decreased 4.5% to $108 million due to a reduction in total debt[9] - Interest expense decreased slightly to $214.0 million from $219.3 million[68] - The income tax expense for Q2 FY25 was $61.5 million, down from $102.9 million in Q2 FY24[67] Assets and Equity - Total current assets increased to $3,205.4 million from $3,149.5 million, reflecting a rise of about 1.8%[45] - Current liabilities surged to $4,559.7 million, up from $3,241.8 million, indicating a significant increase of approximately 41%[45] - Cash and cash equivalents decreased to $37.4 million from $77.7 million, a decline of about 52%[46] - Total stockholders' equity rose to $8,800.7 million from $8,511.3 million, an increase of approximately 3.4%[45]