Conagra Brands Q4 Earnings Coming Up: What Investors Need to Know

Core Insights - Conagra Brands, Inc. (CAG) is expected to report a decline in both revenue and earnings for the fourth quarter of fiscal 2025, with earnings per share (EPS) estimated at 59 cents, reflecting a 3.3% decrease year-over-year [1][8] - The consensus estimate for quarterly revenues is projected at $2.9 billion, indicating a 1.8% decline from the previous year [1][8] - For fiscal 2025, the overall earnings guidance suggests a decline of 12.7% in EPS to $2.33, with organic net sales growth expected to decrease by 2% [1][4] Financial Performance - The adjusted operating margin for fiscal 2025 is projected at 14.4%, down from previous levels, with adjusted earnings forecasted at $2.35 per share, a decrease from $2.67 in fiscal 2024 [4] - The trailing four-quarter negative earnings surprise for CAG averages almost -0.1% [1] Cost Pressures - Persistent cost inflation, particularly in input and protein costs, continues to impact margin performance, with an expected adjusted gross margin contraction of 170 basis points year-over-year [2] - Rising selling, general and administrative (SG&A) expenses, including advertising and promotional spending, are further squeezing profitability [2] Market Conditions - The Foodservice segment is under pressure due to weaker commercial traffic and a sluggish recovery in out-of-home dining, reflecting broader industry challenges [3] - Currency volatility due to international exposure adds additional pressure on the company's performance [3]