Financial Data and Key Metrics Changes - The company expects organic net sales growth in the second half of the fiscal year, with positive momentum observed in December [11][12] - Operating profit and margin performance in the first half of the year has been good, with favorable tariff timing and chicken inflation, although there are offsets with beef and pork [21][22] - The company maintains a total gross inflation guidance of 7% for the year, with core inflation slightly above 4% and gross tariff inflation around 3% [42][44] Business Line Data and Key Metrics Changes - The frozen and snacks segments are identified as growth domains, with snacks already showing robust growth and frozen aiming to reclaim market share lost due to previous supply constraints [31][32] - The company is focusing on productivity improvements, with productivity running at about 5% [52] Market Data and Key Metrics Changes - The company has seen a return to growth in the snacks category, benefiting from a bounce back in convenience stores [31] - Frozen single-serve meals market share is close to 53%, indicating strong recovery and growth potential [32] Company Strategy and Development Direction - The company is implementing Project Catalyst, which focuses on re-engineering core business processes using technology, particularly AI, to enhance efficiency and effectiveness [25][26] - The company is committed to margin expansion, particularly in the frozen segment, through productivity improvements and supply chain resiliency investments [52] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the volatility in the operating environment and has guided to a wider range for EPS to navigate uncertainties [23][82] - The company is optimistic about the second half of the fiscal year, expecting strong promotional activity and improved market conditions [85] Other Important Information - The company has completed the baked chicken facility, which is expected to enhance production efficiency and margin [100] - An impairment charge was taken due to a sustained decline in stock price, which required a reassessment of goodwill and brand value [102][103] Q&A Session Summary Question: Expectations for organic sales growth in Q3 - Management expects positive organic net sales growth in the second half, with momentum building in December [11][12] Question: Clarification on annual outlook and impact of Ardent - Management feels confident in offsetting the shortfall from Ardent and maintaining EPS guidance [22][23] Question: Insights on Project Catalyst and cost savings - Project Catalyst aims to automate business processes for improved efficiency, with expected returns on investment [25][26] Question: Consumption trends and growth outlook for fiscal 2027 - Management sees potential for growth in frozen and snacks, with strong marketing plans in place [31][34] Question: Impact of competitors' price cuts - The company has not rolled back prices to move volume but has maintained pricing to support promotional activities [40][41] Question: Inflation guidance and its components - The company maintains a total gross inflation guidance of 7%, with some favorable trends in chicken but increased costs in beef and pork [42][44] Question: AMP spending and consumer value-seeking behavior - The company will emphasize relative value in advertising to attract consumers [74][75] Question: Weather impact on sales - Management noted that colder weather has positively affected sales trends in the canned food segment [79][80] Question: EPS range and uncertainties - Management indicated that the EPS range remains wide due to ongoing uncertainties in the market [82][83] Question: Portfolio management and M&A strategy - The company is open to reshaping its portfolio for value creation but is currently focused on debt reduction [95] Question: Completion of the baked chicken facility and margin improvement - The transition to in-house production is expected to enhance margins, with the project on track [100][101]

Core Insights - Conagra Brands reported revenue of $2.98 billion for the quarter ended November 2025, reflecting a decline of 6.8% year-over-year and a slight miss of 0.35% against the Zacks Consensus Estimate of $2.99 billion [1] - The earnings per share (EPS) for the quarter was $0.45, down from $0.70 in the same quarter last year, with a positive surprise of 2.27% compared to the consensus estimate of $0.44 [1] Financial Performance Metrics - Net Sales growth in Grocery & Snacks was -8.5%, outperforming the average estimate of -11% from four analysts [4] - Net Sales growth in Refrigerated & Frozen was -6.5%, compared to the average estimate of -4.1% [4] - Price/Mix in Foodservice increased by 4.2%, exceeding the average estimate of 2.4% [4] - Organic Volume in Foodservice decreased by 4%, worse than the average estimate of -3.1% [4] - Price/Mix in International was up 3.5%, surpassing the average estimate of 2% [4] - Organic Volume in International declined by 6.4%, compared to the average estimate of -1.9% [4] - Net Sales growth in International was -5.4%, worse than the average estimate of -2.2% [4] - Net Sales growth in Foodservice was -1.3%, compared to the average estimate of -0.8% [4] Sales Breakdown - Sales in Grocery & Snacks amounted to $1.21 billion, slightly above the average estimate of $1.18 billion, representing a year-over-year decline of 8.5% [4] - Sales in Foodservice were reported at $288.4 million, close to the average estimate of $289.97 million, reflecting a -1.3% change year-over-year [4] - Sales in International reached $230.4 million, below the average estimate of $238.31 million, indicating a year-over-year change of -5.3% [4] - Sales in Refrigerated & Frozen totaled $1.25 billion, compared to the average estimate of $1.28 billion, marking a -6.5% change year-over-year [4] Stock Performance - Shares of Conagra Brands have returned +2.4% over the past month, slightly underperforming the Zacks S&P 500 composite's +2.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company expects organic net sales growth in the second half of fiscal 2026, driven by improved shipment flows and easier comparisons in the frozen segment [9][10] - Operating profit and margin performance in the first half of the year were strong, with favorable tariff timing and productivity programs contributing positively [18][21] - The company maintains a total gross inflation guidance of 7% for the year, with core inflation slightly above 4% and tariff inflation around 3% [41][42] Business Line Data and Key Metrics Changes - The frozen and snacks segments are identified as key growth areas, with snacks already showing robust growth and frozen aiming to reclaim market share lost during supply constraints [28][30] - The company is focusing on high-quality promotional activities in the frozen segment, which were limited in the previous year due to supply issues [30][31] Market Data and Key Metrics Changes - The company has seen a return to growth in the snacks segment, benefiting from increased convenience store traffic [28] - The frozen segment's market share is recovering, with single-serve meals approaching a 53% market share, indicating strong competitive positioning [30] Company Strategy and Development Direction - The company is implementing Project Catalyst, aimed at re-engineering core business processes using technology and AI to enhance efficiency and effectiveness [23][24] - The focus remains on debt reduction and evaluating portfolio opportunities, including potential divestitures and inbounds, to create shareholder value [92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive organic sales growth in the second half of the fiscal year, despite a volatile environment [21][22] - The company is cautious about predicting inflation trends but anticipates a normalization in protein prices, which have been a significant cost driver [88][89] Other Important Information - The company completed a significant impairment charge due to a sustained decline in stock price, necessitating a reassessment of goodwill and brand values [100][101] - The baked chicken facility is now complete, with plans to repatriate production to improve margins [96][99] Q&A Session Summary Question: Expectations for organic sales growth in Q3 - Management expects positive organic net sales growth in the second half, with improved shipment flows and promotional activities [9][10] Question: Impact of competitors' price cuts - The company has not rolled back prices to move volume but has maintained pricing to support promotional activities [37][38] Question: Inflation guidance and its components - The company maintains a gross inflation guidance of 7%, with core inflation slightly above 4% and tariff inflation around 3% [41][42] Question: AMP spending and its impact - Increased AMP spending will emphasize relative value in marketing, aiming to attract value-seeking consumers [72][73] Question: Trends in frozen and refrigerated segments - Management anticipates a strong second half for frozen products, with market shares recovering and promotional activities ramping up [83][84] Question: Portfolio management and potential M&A - The company is open to reshaping its portfolio for value creation but is currently focused on debt reduction [92] Question: Completion of the baked chicken facility - The facility is complete, and production will transition back in-house, which is expected to improve margins [96][99]

Market Overview - U.S. stocks traded higher, with the Dow Jones index gaining over 200 points, up 0.49% to 48,188.36, NASDAQ rising 1.03% to 23,243.38, and S&P 500 increasing 0.73% to 6,824.15 [1] - Information technology shares rose by 1.6%, while real estate stocks fell by 0.1% [1] Company Performance - Conagra Brands Inc (NYSE:CAG) shares fell more than 4% after reporting second-quarter earnings of 45 cents per share, beating the analyst consensus estimate of 44 cents, but quarterly sales of $2.979 billion missed the estimate of $2.986 billion [2] Commodity Market - Oil traded up 1% to $56.47, while gold decreased by 0.2% to $4,365.60. Silver fell 1.9% to $65.640, and copper rose 0.1% to $5.4360 [4] Global Market Performance - European shares were higher, with the eurozone's STOXX 600 gaining 0.1%, Spain's IBEX 35 up 0.2%, London's FTSE 100 up 0.2%, Germany's DAX 40 rising 0.2%, and France's CAC 40 gaining 0.1% [5] - Asian markets closed higher, with Japan's Nikkei 225 gaining 1.03%, Hong Kong's Hang Seng up 0.75%, China's Shanghai Composite rising 0.36%, and India's BSE Sensex increasing 0.53% [6] Notable Stock Movements - Autozi Internet Technology (NASDAQ:AZI) shares surged 85% to $2.81 after a $90 million initial equity investment was confirmed by a strategic investor [8] - Julong Holding Ltd (NASDAQ:JLHL) shares increased by 43% to $4.37, while ProPhase Labs Inc (NASDAQ:PRPH) shares rose 44% to $0.15 following a non-binding LOI for a proposed reverse merger [8] - Geovax Labs Inc (NASDAQ:GOVX) shares dropped 47% to $0.13, and Nisun International Enterprise Development Group Co Ltd (NASDAQ:NISN) fell 44% to $1.86 [8]

Core Insights - Conagra Brands (CAG) reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, but down from $0.7 per share a year ago, indicating an earnings surprise of +2.27% [1] - The company posted revenues of $2.98 billion for the quarter ended November 2025, missing the Zacks Consensus Estimate by 0.35% and down from $3.2 billion year-over-year [2] - Conagra Brands shares have declined approximately 35.9% year-to-date, contrasting with the S&P 500's gain of 15.2% [3] Earnings Outlook - The future performance of Conagra Brands' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $2.74 billion, and for the current fiscal year, it is $1.75 on revenues of $11.25 billion [7] Industry Context - The Food - Miscellaneous industry, to which Conagra Brands belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Financial Performance - Q2 FY26 - Conagra's Q2 FY26 organic net sales decreased by 30% compared to the previous year, totaling $2975 million[51, 52, 53] - Adjusted EPS for Q2 FY26 was $045, a decrease of 357% year-over-year[51] - Adjusted operating margin for Q2 FY26 was 113%, a decrease of 406 bps compared to the previous year[51, 54, 55, 57] - For H1 FY26, organic net sales decreased by 19% to $5586 million[51, 76] - Adjusted EPS for H1 FY26 was $085, a decrease of 309% year-over-year[51] Segment Performance - Q2 FY26 - Grocery & Snacks net sales were $1209 million, with a 15% organic net sales decrease[53] - Refrigerated & Frozen net sales were $1251 million, with a 51% organic net sales decrease[53] - International net sales were $230 million, with a 29% organic net sales decrease[53] - Foodservice net sales were $288 million, with a 02% organic net sales increase[53] Key Business Trends - Frozen retail volume sales showed a return to growth on a two-year basis, with a +08% change in Q2 FY26[14, 15] - 90% of frozen products held or gained volume share vs 2 years ago[15] - Conagra's frozen single-serve meals volume share of category was 529% in Q2 FY26, a +05 percentage point change vs 2 years ago[18, 19, 20, 21] - Conagra's frozen vegetables volume % change was +91% vs 2 years ago[22, 23] - Conagra's frozen vegetables volume share of category was 191% in Q2 FY26, a +13 percentage point change vs 2 years ago[24, 25]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Group 1 - The presentation is led by Matthew Neisius, Senior Director of Investor Relations, who introduces the Conagra Brands Second Quarter Fiscal 2026 Earnings [1] - The CEO, Sean Connolly, and CFO, Dave Marberger, will make forward-looking statements during the presentation, emphasizing that these statements are made in good faith based on current information [2] - A live question-and-answer session will follow the prepared remarks, accessible via webcast on the investor relations website [1][2] Group 2 - The company will discuss non-GAAP financial measures, with reconciliations and comparability items available in the earnings release and presentation materials [2]

Core Insights - Conagra Brands reported in-line revenue for Q2, with a slight profit beat and reaffirmed its full-year outlook [2] Segment Performance - The Grocery & Snacks segment experienced a decline of 8.5%, with net sales reaching $1.2 billion [2] - The Refrigerated & Frozen segment also saw a decrease, although specific figures were not provided in the excerpt [2]

Core Insights - Conagra experienced a decline in sales during its latest quarter as consumers reduced spending on its products [1] Company Summary - The company reported lower sales figures compared to previous periods, indicating a shift in consumer behavior towards spending less on its offerings [1]