Conagra Brands, Inc. (CAG) is a leading packaged foods company headquartered in Chicago, Illinois. With a market cap of $15.5 billion, the company specializes in producing and marketing a diverse portfolio of branded and private-label food products across various categories, including frozen meals, snacks, condiments, and shelf-stable meals. It is expected to release its fiscal Q3 earnings results before the market opens on Thursday, Apr. 3.
Ahead of this event, analysts project the CAG to report a profit of $0.59 per share, a decline of 14.5% from $0.69 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarterly reports, while missing on another occasion.
For fiscal 2025, analysts project Conagra Brands to deliver EPS of $2.46, representing a 7.9% decline from the $2.67 in fiscal 2024. However, looking ahead to fiscal 2026, EPS is expected to rebound, rising 4.1% year-over-year to $2.56.
Shares of Conagra Brands have plunged 13.5% over the past 52 weeks, lagging behind both the broader S&P 500 Index's ($SPX) 24.1% return and the Consumer Staples Select Sector SPDR Fund's (XLP) 8.4% increase over the same time period.
Conagra Brands has lagged behind the broader market over the past year due to a combination of inflationary pressures, supply chain challenges, and heightened competition. Rising costs for raw materials and transportation have compressed profit margins, while supply chain disruptions have increased operational inefficiencies.
On Dec. 19, Conagra Brands released its second-quarter earnings, and its shares dropped more than 2%. Despite topping the market’s expectations, sales were down slightly from the prior-year quarter to $3.2 billion. The company now expects adjusted EPS between $2.45 and $2.50, down from the prior estimate of $2.60 to $2.65. Additionally, the adjusted operating margin forecast has been lowered to approximately 14.8% from the previous range of 15.6% to 15.8%
Analysts' consensus view on Conagra Brands stock is skeptical, with a "Hold" rating overall. Among the 15 analysts covering the stock, three suggest a "Strong Buy," and 12 recommend a "Hold."
CAG’s average analyst price target of $31.33 implies an upside potential of 14% from the prevailing market prices.
