Core Insights - Conagra Brands, Inc. reported a slight decrease in net sales of 0.4% for Q2 FY2025, with organic net sales increasing by 0.3% [1][2] - The company experienced a decrease in operating margins, with reported operating margin at 12.6%, down 138 basis points, and adjusted operating margin at 15.3%, down 57 basis points [1][2] - Diluted earnings per share (EPS) decreased by 1.7% to $0.59, while adjusted EPS decreased by 1.4% to $0.70 [1][2] Financial Performance - Total net sales for the quarter were $3.2 billion, with a breakdown showing a 0.4% decrease from M&A impacts and a 0.3% decrease from foreign exchange, while organic net sales increased by 0.3% [2] - Gross profit remained flat at $847 million, with adjusted gross profit decreasing by 2.3% to $842 million due to inflation in cost of goods sold [2] - Selling, general, and administrative expenses (SG&A) rose by 11.6% to $444 million, primarily due to non-cash charges related to restructuring plans [2][6] Segment Performance - The Grocery & Snacks segment saw a 2.0% increase in net sales to $1.3 billion, driven by a 1.2% increase in organic net sales [2][3] - The Refrigerated & Frozen segment's net sales were flat at $1.3 billion, with a volume increase of 1.9% offset by a 1.9% decrease in price/mix [3][4] - The International segment experienced a 12.9% decrease in net sales to $243 million, impacted by M&A and foreign exchange [4][5] Cash Flow and Debt - For the first half of FY2025, the company generated $754 million in net cash flows from operating activities, down from $855 million in the prior year [7] - Free cash flow decreased by $102 million to $539 million, while dividends paid increased by 3.2% to $335 million [7] - The company ended the quarter with net debt of $8.4 billion, a 6.5% reduction year-over-year, resulting in a net leverage ratio of 3.54x [7] Outlook - Conagra Brands updated its fiscal 2025 guidance, expecting organic net sales to be near the midpoint of (1.5)% to flat compared to FY2024 [8] - The adjusted operating margin is projected to be approximately 14.8%, with adjusted EPS expected to be between $2.45 and $2.50 [8] - The company anticipates inflation to be closer to 4% and an adjusted effective tax rate of approximately 23.0% [8]

Core Insights - Conagra Brands, Inc. (CAG) is expected to report a decline in both revenue and earnings for the second quarter of fiscal 2025, with revenue estimated at $3.1 billion, reflecting a nearly 2% decrease year-over-year, and earnings per share projected at 68 cents, down 4.2% from the previous year [1][3]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for Conagra's revenues is $3.1 billion, indicating a decline of almost 2% from the prior-year quarter [1]. - The consensus estimate for quarterly earnings has remained unchanged at 68 cents per share, suggesting a 4.2% decrease from the year-ago quarter [1]. - Conagra has a trailing four-quarter negative earnings surprise of 3.1% on average [1]. Group 2: Industry and Operational Challenges - Conagra's Foodservice division is experiencing pressure due to sluggish consumption trends, with an anticipated 8.5% decline in Foodservice unit organic sales for the second quarter [3]. - Overall volume is expected to decline by 0.7%, with organic sales projected to drop by 1.8% in the upcoming quarter [3]. - The company is facing persistent cost inflation, particularly in goods sold (COGS), driven by rising costs in protein and sweeteners, which poses a threat to profitability [4]. Group 3: Earnings Prediction Insights - The current model does not predict an earnings beat for Conagra, as it has a Zacks Rank of 3 and an Earnings ESP of -4.01% [5][7]. - A positive Earnings ESP combined with a Zacks Rank of 1, 2, or 3 typically increases the likelihood of an earnings beat, but this is not applicable for Conagra at this time [5].

Core Insights - The U.S. frozen food market is valued at $91.3 billion and is experiencing growth driven by trends such as increased GLP-1 usage, a preference for spicy foods, and elevated in-home dining experiences [1][6] Industry Trends - **Modern Health**: There is a growing demand for frozen products that support gut health and dietary needs, with a 33% increase in sales of frozen foods containing probiotics over the past three years. Additionally, products catering to the 15 million Americans using GLP-1 medication are emerging [2][3] - **Elevated In-Home Experiences**: Consumers are increasingly dining at home, leading to a rise in demand for premium, restaurant-quality frozen food options. There have been 25.6 billion additional in-home eating occasions since pre-pandemic [2][5] - **Global Cuisine**: The popularity of diverse flavors is rising, with Indian and Japanese-inspired meals seeing significant sales growth. Younger generations are 24% more likely to purchase globally inspired frozen products [3][6] - **Bites & Minis**: Sales of bite-sized and mini frozen foods have reached $2.4 billion, with a 31% year-over-year increase in consumption. These products are now commonly enjoyed as meals rather than just appetizers [3][4] - **Spice & Heat**: Sales of spicy frozen foods have surpassed $2.0 billion, with Gen Z showing a 48% higher likelihood of purchasing spicy options. Emerging spice profiles reflect global culinary influences [3][4]

Analysts on Wall Street project that Conagra Brands (CAG) will announce quarterly earnings of $0.68 per share in its forthcoming report, representing a decline of 4.2% year over year. Revenues are projected to reach $3.14 billion, declining 2% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company announces its ...

The market expects Conagra Brands (CAG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended November 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be releas ...

Conagra Brands, Inc. (CAG) leverages strategic initiatives to boost growth and recover margins despite a challenging market environment. The company’s strong performance in snacks and frozen foods, coupled with portfolio restructuring to meet shifting consumer demands, highlights its growth strategy. However, underlying inflation and a struggling Foodservice unit raise concerns about its ability to maintain momentum.Strategic Moves Power CAG’s Growth StoryConagra is actively reshaping its portfolio to drive ...

CHICAGO, Nov. 19, 2024 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG) will release its fiscal 2025 second quarter results on Thursday, December 19, 2024. A press release and supplemental materials, including pre-recorded remarks, will be issued that morning prior to a 30-minute live question-and-answer session with the investment community at 9:30 a.m. ET.The pre-recorded remarks, transcript, press release, presentation slides, and live audio Q&A can be accessed at conagrabrands.com/investor-relations und ...

 Awards focus on Climate Change, Packaging, Responsible Sourcing, Water Reduction and Waste ReductionCHICAGO, Nov. 1, 2024 /PRNewswire/ -- Conagra Brands (NYSE: CAG) announced today the winners of its Sustainable Development Awards, a program designed to recognize and celebrate the outstanding achievements and contributions of its dedicated employees. The awards are focused on sustainability initiatives across five strategic categories: Climate Change, Packaging, Responsible Sourcing, Water Reduction and Wa ...

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Conagra Brands TodayCAGConagra Brands$29.09 -0.42 (-1.42%) 52-Week Range$26.42▼$33.24Dividend Yield4.81%P/E Ratio39.85Price Target$31.33Add to WatchlistConagra Inc. NYSE: CAG shares were punished by 10% after reporting its fiscal first quarter of 2025 earnings missing both top and bottom-line consensus estimates. While the company had warned earlier that fiscal year 2025 would be a transition year, investors were still surprised by the underperformance as the company hadn't missed consensus guidance since Q ...