- Conagra’s adjusted earnings per share (EPS) for Q3 missed estimates, reporting 51 cents compared to an expected 53 cents and 69 cents in the previous year.
- Net sales were $2.84 billion, reflecting a 6.3% decrease from the prior year, and fell short of the $2.9 billion estimate.
- The Grocery & Snacks segment reported net sales of $1.25 billion, down 3.2% from the previous year and below the $1.28 billion estimate.
- Refrigerated & Frozen segment net sales reached $1.12 billion, a 7.2% decrease year-over-year, but slightly above the $1.11 billion estimate.
- International net sales were $223.9 million, representing an 18% decrease year-over-year and falling short of the $243.6 million estimate.
- Foodservice net sales totaled $256.1 million, decreasing by 6.1% year-over-year, below the $273.8 million estimate.
- The adjusted operating margin was 12.7%, down from 16.4% in the previous year, and below the estimated 13.5%.
- Capital expenditures for the year are expected to be approximately $410 million.
- CEO Sean Connolly remarked that the quarter progressed largely as expected, noting strong brand resilience despite supply constraints announced in February.
- The company is focusing on restoring inventory and improving customer service levels.
- Analyst recommendations for Conagra include 2 buys, 16 holds, and 1 sell.
Conagra Foods on Smartkarma
Analyst coverage of Conagra Foods on Smartkarma reveals valuable insights for investors. Baptista Research, in their latest report titled “Conagra Brands: Leveraging the Growth Potential in Frozen Foods to Set New Standards! – Major Drivers,” highlighted the mixed performance of Conagra Brands’ earnings report for the second quarter and first half of fiscal 2025. The report notes positive operational strides alongside challenges from external factors. Despite this, the company’s consistent revenues, with shipments increasing by 1% and consumption rising by 0.6%, demonstrate a strong alignment between production and sales. Notably, there was no significant impact from Thanksgiving timing on these figures, a positive sign for investors.
A look at Conagra Foods Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
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, with high scores in Dividend and Value, signifies a company that is strong in providing returns to its investors and is considered undervalued. This indicates a positive long-term outlook for the company, attracting investors seeking stable and growing dividends while also focusing on potentially lucrative value investments. Despite a slightly lower score in Growth and Resilience, the company displays promising Momentum, suggesting a potential uptrend in its stock performance over time.
Conagra Foods, known for its wide array of packaged food options, appears well-positioned to weather market challenges with its diverse product portfolio. Investors could view this as a stable choice, especially considering the high dividend score, inferring a reliable income stream. Overall, the SmartKarma Smart Scores suggest a favorable long-term outlook for Conagra Foods based on its financial health and strategic positioning in the consumer food industry.
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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