- Conagra’s net sales for the second quarter were $2.98 billion, matching the estimated figures. However, this marks a 6.8% decrease compared to the previous year.
- Grocery & Snacks segment net sales were reported at $1.21 billion, down 8.5% year-over-year, but slightly above the $1.19 billion estimate.
- Refrigerated & Frozen segment net sales reached $1.25 billion, reflecting a 6.5% decline from last year and just below the $1.26 billion anticipated.
- International net sales came in at $230.4 million, representing a 5.3% decrease year-over-year, below the forecast of $237.2 million.
- Foodservice net sales totaled $288.4 million, a slight 1.3% drop from the previous year, slightly under the $290.1 million estimate.
- Organic net sales decreased by 3%, compared to a 0.3% increase the previous year, missing the -2.42% forecast.
- The adjusted operating margin was 11.3%, down from 15.3% the previous year, but exceeded the 10.6% estimate.
- For fiscal 2026, Conagra maintains its adjusted EPS outlook between $1.70 and $1.85, aligning with the current $1.75 estimate.
- The company revised its adjusted equity earnings forecast to approximately $170 million for the fiscal year, down from an earlier estimate of $200 million.
- Conagra anticipates continued elevated cost of goods sold inflation through fiscal 2026.
- The company plans to return to organic net sales growth in the second half, supported by new product innovations, increased marketing efforts, and a strong supply chain.
- Conagra reaffirmed its fiscal 2026 guidance amidst these strategic initiatives.
- Market sentiment includes 3 buy ratings, 13 hold ratings, and 3 sell ratings for Conagra’s stock.
Conagra Foods on Smartkarma
Analysts on Smartkarma are closely monitoring Conagra Foods, with Baptista Research providing valuable insights into the company’s performance. In their report titled “Conagra Brands: How 85% Commodity Coverage Shields It from Market Volatility!“, the analysts discuss the recent earnings of Conagra Brands, highlighting both challenges and potential opportunities. They emphasize the importance of the company’s ability to achieve positive organic sales growth, especially after anticipating a decline in sales for the second quarter due to various factors such as shifting promotional events and inflation-based pricing adjustments.
In another report by Baptista Research titled “Conagra Brands: Productivity & Supply Chain Optimization For Margin Recovery & Strategic Growth Adaptability!“, the analysts delve into Conagra Brands’ earnings for the fourth quarter of fiscal year 2025. They analyze the challenges and strategic decisions made by the company to balance immediate financial pressures with long-term growth objectives. Conagra’s focus on bolstering volume growth in key categories like frozen and snacks, amidst persistent inflation, reflects a clear strategic direction set by CEO Sean Connolly. The analysts highlight the company’s commitment to investing in volume growth based on successful past experiences, particularly in the frozen and snacks segments.
A look at Conagra Foods Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Conagra Foods, a company that manufactures and markets packaged foods, is positioned well for long-term success according to the Smartkarma Smart Scores analysis. With top scores of 5 in both Value and Dividend, Conagra Foods is considered to have strong fundamentals and a consistent track record of returning value to its shareholders. Additionally, scoring a 4 in Growth indicates that the company has above-average potential for expansion in the future. While resilience and momentum scores of 3 each suggest some room for improvement in these areas, overall, the outlook for Conagra Foods appears positive.
In summary, Conagra Foods is a company that focuses on providing a diverse range of food products to various segments of the market. With its top scores in Value and Dividend, as well as a solid Growth score, the company demonstrates its commitment to delivering value to investors while also positioning itself for potential growth opportunities in the future. Although there are areas such as Resilience and Momentum that could be strengthened, the overall outlook for Conagra Foods remains promising based on the Smartkarma Smart Scores assessment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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