Core Viewpoint - The launch of China's DeepSeek AI chatbot has caused significant market reactions, particularly impacting tech stocks while benefiting consumer staple stocks [1][2]. Group 1: Impact on Tech Stocks - The introduction of DeepSeek is perceived as a competitive threat to established AI companies like Nvidia and Taiwan Semiconductor, leading to a decline in their stock prices [2][4]. - The tech sector had already been experiencing a rise, driven by strong demand and expectations of an AI revolution, but DeepSeek's efficiency and cost-effectiveness challenge these assumptions [4]. Group 2: Performance of Consumer Staples - Consumer staple stocks such as Conagra Brands, J.M. Smucker, and Kraft Heinz saw gains of 3.9%, 3.5%, and 3.4% respectively, as investors shifted towards safer investments [3]. - These companies are less affected by economic fluctuations and AI developments, making them attractive during market turbulence [5]. Group 3: Company-Specific Insights - Conagra has faced sales declines of 0.4% in its most recent quarter, but it maintains a forecasted adjusted operating margin of 14.8% for fiscal 2025, indicating strong brand and distribution capabilities [6][7]. - J.M. Smucker's revenue, excluding acquisitions, grew by 2%, and the company raised its earnings per share guidance, benefiting from its acquisition of Hostess [8]. - Kraft Heinz has struggled, with a 2.8% revenue decline in its third quarter and a $1.4 billion impairment charge, reflecting ongoing challenges in its product portfolio [9][10]. Group 4: Market Outlook - The recent rotation towards safe stocks may not indicate a long-term trend, but it highlights the tendency of investors to seek stability during periods of heightened risk [11][12]. - Companies in the consumer staples sector are noted for their strong dividend payouts, providing income to investors even in declining markets [12].

Core Viewpoint - Conagra Brands, Inc. (CAG) is currently facing significant challenges, with its stock underperforming compared to industry benchmarks and broader market indices, raising concerns about its long-term investment potential [1][5]. Stock Performance - Over the past three months, Conagra's shares have declined by 12.5%, compared to a 10.8% decline in the industry and an 8.6% drop in the Zacks Consumer Staples sector, while the S&P 500 has grown by 3.4% [1]. - The stock closed at $25.82, nearing its 52-week low of $25.35, and is trading below its 50- and 200-day moving averages, indicating potential weakness [4]. Financial Challenges - Conagra is grappling with inflation and a downturn in its Foodservice unit, which has led to a contraction in gross margins [6]. - The company initially expected inflation to peak in the second quarter of fiscal 2025, but this relief has been delayed, with cost of goods sold inflation at 3.8%, impacting margins by 2.6% [7]. - Adjusted gross profit fell by 2.3% to $842 million, and adjusted gross margin contracted by 52 basis points to 26.4% [7]. Foodservice Unit Performance - The Foodservice segment reported a 0.9% year-over-year sales decline to $292.2 million, with organic sales down by 1% [8]. - Although price/mix improved by 2.9%, volumes decreased by 3.9% due to lost business and sluggish restaurant traffic, reflecting broader macroeconomic challenges [8]. Currency Impact - Conagra's international segment faced a 30-basis-point currency headwind to net sales due to the strengthening U.S. dollar against the Mexican peso, which is expected to pressure profitability in fiscal 2025 [10]. Consumer Dynamics - The company noted that consumer behavior is shifting towards value-seeking and affordability due to ongoing inflation, prompting a revision of its fiscal outlook [11]. - Adjusted operating margin for fiscal 2025 is now expected to be around 14.8%, down from a previous range of 15.6%-15.8% [12]. Earnings Estimates - The Zacks Consensus Estimate for Conagra's earnings per share has been revised downward, indicating a bearish outlook among analysts [13]. - For fiscal 2025, adjusted earnings per share are projected to be in the range of $2.45-$2.50, down from the earlier estimate of $2.60-$2.65 [12]. Strategic Response - In response to these challenges, Conagra is increasing investments in advertising, promotions, and innovation, although the effectiveness of these efforts varies [12]. - Despite strong brand positioning and strategic growth efforts, persistent inflation and a dynamic consumer environment pose challenges for the company [14].

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 ...

CONAGRA • B R A N D S • FY25 Q2 Earnings Presentation December 19, 2024 1 Legal Disclosure Note on Forward-Looking Statements This document contains forward-looking statements within the meaning of the federal securities laws. Examples of forward-looking statements include statements regarding the company's expected future financial performance or position, results of operations, business strategy, plans and objectives of management for future operations, and other statements that are not historical facts. ...

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 ...