Why Conagra Stock Is Falling Today

Core Insights - Conagra Brands experienced a mixed quarter with disappointing guidance for fiscal 2025, leading to a decline in stock price [1][2] - The company reported adjusted earnings of $0.61 per share, surpassing the $0.57 consensus estimate, but revenue of $2.91 billion fell short of the $2.93 billion estimate [2] - Fiscal 2025 earnings guidance is projected between $2.60 and $2.65 per share, below the $2.69 estimate, with organic sales expected to decline by 1.5% to remain flat [2] Financial Performance - Adjusted earnings for the fiscal fourth quarter were $0.61 per share, beating Wall Street estimates [2] - Revenue for the quarter was $2.91 billion, slightly below the expected $2.93 billion [2] - The company anticipates fiscal 2025 earnings to be lower than market expectations, indicating potential challenges ahead [2] Market Reaction - Following the earnings report, Conagra's stock initially dropped by as much as 5% before recovering to a 2% decline [1] - The stock has been largely flat over the past five years, trailing the market by approximately 86 percentage points [3] Growth Outlook - CEO Sean Connolly indicated that the company expects a gradual easing of challenging industry trends as consumers adapt to new price levels [2] - International sales were the only segment to show growth in the recent quarter, highlighting a potential area of strength for the company [3] Investment Considerations - The current dividend yield is nearly 5%, which may attract investors despite the stock's recent performance [3] - Until Conagra can revitalize its growth, there may be more attractive investment opportunities available in the market [3]