With a market cap of $15.5 billion, Conagra Brands, Inc. (CAG) is a leading consumer packaged goods company. It offers a diverse range of branded food products across Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Chicago, Illinois-based company is expected to release its fiscal Q1 earnings results before the market opens on Wednesday, Oct. 2.
Ahead of this event, analysts project the packaged foods company to report a profit of $0.59 per share, a decline of 10.6% from $0.66 per share in the year-ago quarter. However, the company has consistently surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. In Q4 2024, CAG reported an EPS of $0.61, beating the consensus estimate by 8.9%.
For fiscal 2025, analysts forecast CAG to report EPS of $2.61, down 2.3% from $2.67 in fiscal 2024. However, looking ahead to fiscal 2026, analysts anticipate EPS to grow 3.5% year over year to $2.70.
In 2024, Conagra Brands gained 13.3%, lagging behind both the broader S&P 500 Index's ($SPX) 20.3% return and the Consumer Staples Select Sector SPDR Fund's (XLP) 15.3% increase on a YTD basis.
Conagra stock fell 1.5% on Jul. 11 because the company provided disappointing guidance for fiscal 2025, projecting earnings below analyst expectations at $2.60 per share - $2.65 per share, and forecasted flat to a 1.5% decline in organic sales. Additionally, despite beating earnings expectations, lower-than-expected Q4 revenue of $2.91 billion missed Wall Street's $2.93 billion estimate, raising concerns about the impact of price inflation on consumer demand.
Analysts' consensus view on Conagra Brands stock is cautious, with a "Hold" rating overall. Among 14 analysts covering the stock, two suggest a "Strong Buy," and 12 recommend a "Hold." This configuration is slightly more bullish than three months ago, with one analyst suggesting a "Strong Buy." As of writing, CAG is trading above the average analyst price target of $31.33.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
