Conagra Brands (NYSE:CAG) Issues Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Conagra Brands (NYSE:CAG) posted its quarterly earnings results on Wednesday. The company reported $0.47 EPS for the quarter, topping analysts’ consensus estimates of $0.46 by $0.01, Briefing.com reports. Conagra Brands had a positive return on equity of 10.15% and a negative net margin of 0.39%.The company had revenue of $2.88 billion for the quarter, compared to analysts’ expectations of $2.89 billion. During the same period in the previous year, the firm earned $0.56 EPS. The firm’s revenue was up 3.6% compared to the same quarter last year. Conagra Brands updated its FY 2027 guidance to 1.400-1.500 EPS.

Here are the key takeaways from Conagra Brands’ conference call:

• Management said the dividend cut is intended to help Conagra move toward its 3.0x leverage target while preserving room to invest in the business and maintain investment-grade credit quality.
• The company plans a meaningful increase in fiscal 2027 investment, including about $40 million more in brand building and $125 million of incremental CapEx to improve supply chain resilience and lower costs through insourcing.
• Management expects pricing actions in Frozen to help offset persistent inflation, while still targeting productivity above 4%; however, this balance is likely to keep volume under pressure, with organic sales expected to decline mid-single digits.
• John Brase reiterated that Conagra will continue to back its core growth areas, especially Frozen and permissible snacking, and said the company believes it has a strong innovation pipeline and attractive long-term category positioning.
• Management acknowledged the business has become too large and too complex, and said portfolio simplification and SKU rationalization will be a mid- to long-term effort, with more detail expected at Investor Day in early 2027.

Conagra Brands Trading Down 0.1%

CAG opened at $14.14 on Thursday. The company has a quick ratio of 0.30, a current ratio of 0.90 and a debt-to-equity ratio of 0.79. Conagra Brands has a 52 week low of $12.53 and a 52 week high of $20.32. The business’s 50 day moving average is $13.60 and its two-hundred day moving average is $15.74. The firm has a market cap of $6.76 billion, a price-to-earnings ratio of -141.35 and a beta of -0.02.

Conagra Brands Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 2nd. Shareholders of record on Thursday, July 30th will be given a dividend of $0.175 per share. The ex-dividend date of this dividend is Thursday, July 30th. This represents a $0.70 annualized dividend and a yield of 5.0%. Conagra Brands’s payout ratio is -1,400.00%.

More Conagra Brands News

Here are the key news stories impacting Conagra Brands this week:

• Positive Sentiment: Conagra beat quarterly EPS estimates and delivered revenue growth of 3.6% year over year, showing the business is still generating sales momentum. Conagra Brands (CAG) Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Management said it will focus on margin improvement, operational simplification, and review of non-core assets, which could support a longer-term turnaround. Conagra’s ‘Show-Me’ CEO Says Every Product Needs to Earn Its Keep
• Neutral Sentiment: The board declared a quarterly dividend of $0.175 per share, payable September 2, maintaining a long dividend history even after the reset. Conagra Brands Announces Quarterly Dividend Payment of $0.175 Per Share
• Negative Sentiment: Conagra cut its dividend in half and issued FY2027 EPS guidance below analyst expectations, raising concerns about near-term earnings power. Conagra reviews non-core assets after slashing dividend, issuing weak outlook
• Negative Sentiment: Margin pressure, inflation, and cautious consumer spending suggest profitability could remain under pressure in the near term. Conagra Brands Earnings Call: Cash Reset Amid Margin Strain

Wall Street Analysts Forecast Growth

A number of research firms have commented on CAG. Evercore decreased their price target on Conagra Brands from $18.00 to $13.00 in a research note on Wednesday, June 10th. BTIG Research started coverage on Conagra Brands in a research note on Monday, April 13th. They issued a “neutral” rating for the company. Royal Bank Of Canada cut their price objective on Conagra Brands from $17.00 to $16.00 and set a “sector perform” rating on the stock in a report on Thursday, June 25th. Wells Fargo & Company decreased their target price on Conagra Brands from $14.00 to $13.00 and set an “underweight” rating on the stock in a research note on Monday, May 18th. Finally, Barclays dropped their target price on Conagra Brands from $18.00 to $16.00 and set an “overweight” rating for the company in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Buy rating, eleven have given a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat.com, Conagra Brands presently has an average rating of “Reduce” and a consensus price target of $14.00.

Hedge Funds Weigh In On Conagra Brands

A number of hedge funds have recently modified their holdings of CAG. Two Sigma Investments LP raised its position in Conagra Brands by 239.6% in the 3rd quarter. Two Sigma Investments LP now owns 8,347,163 shares of the company’s stock valued at $152,837,000 after purchasing an additional 5,889,542 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its position in Conagra Brands by 245.5% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 7,734,061 shares of the company’s stock worth $141,611,000 after purchasing an additional 5,495,503 shares during the last quarter. AQR Capital Management LLC grew its position in Conagra Brands by 216.2% during the 3rd quarter. AQR Capital Management LLC now owns 7,459,654 shares of the company’s stock worth $135,318,000 after purchasing an additional 5,100,424 shares during the last quarter. Qube Research & Technologies Ltd increased its stake in Conagra Brands by 241.9% in the third quarter. Qube Research & Technologies Ltd now owns 5,915,490 shares of the company’s stock valued at $108,313,000 after purchasing an additional 4,185,486 shares during the period. Finally, Ameriprise Financial Inc. increased its stake in Conagra Brands by 69.5% in the second quarter. Ameriprise Financial Inc. now owns 10,145,798 shares of the company’s stock valued at $207,685,000 after purchasing an additional 4,160,542 shares during the period. 83.75% of the stock is currently owned by hedge funds and other institutional investors.

About Conagra Brands

Conagra Brands, Inc is a leading packaged foods company based in Chicago, Illinois, with a broad portfolio of shelf-stable, frozen and refrigerated foods marketed under familiar brands. The company develops, produces and distributes a wide range of consumer food products, serving both retail grocery and foodservice channels. Conagra’s product lineup includes frozen entrees, snacks, condiments, baking goods and desserts, providing convenient meal solutions for consumers across North America and select international markets.

Among its well-known brands are Birds Eye, Healthy Choice, Lean Cuisine, Marie Callender’s and Banquet in the frozen foods category, as well as Hunt’s sauces, Orville Redenbacher’s popcorn, Slim Jim meat snacks and Reddi-wip toppings.