Conagra Brands, Inc. (CAG), headquartered in Chicago, Illinois, operates as a consumer-packaged goods food company. Valued at $12.7 billion by market cap, the company offers meals, entrees, condiments, sides, snacks, specialty potatoes, milled grain ingredients, dehydrated vegetables and seasonings, and blends and flavors. The packaged food company is expected to announce its fiscal third-quarter earnings for 2025 before the market opens on Thursday, Apr. 3.
Ahead of the event, analysts expect CAG to report a profit of $0.52 per share on a diluted basis, down 24.6% from $0.69 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect CAG to report EPS of $2.35, down 12% from $2.67 in fiscal 2024. However, its EPS is expected to rise 3.8% year over year to $2.44 in fiscal 2026.
CAG stock has underperformed the S&P 500’s ($SPX) 7.4% gains over the past 52 weeks, with shares down 10.4% during this period. Similarly, it underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 8% gains over the same time frame.
Conagra Brands has struggled due to rising inflation in key commodities and fierce competition from private-label brands, leading to lower profit projections and declining volumes. Moreover, supply chain disruptions and uncertainty surrounding strategic initiatives have added to the challenges faced by the company.
On Dec. 19, 2024, CAG shares closed down more than 2% after reporting its Q4 results. Its revenue of $3.20 billion surpassed analyst estimates of $3.15 billion. Its adjusted EPS was $0.70, exceeding analyst estimates of $0.67.
Analysts’ consensus opinion on CAG stock is cautious, with a “Hold” rating overall. Out of 16 analysts covering the stock, two advise a “Strong Buy” rating, and 14 give a “Hold.” CAG’s average analyst price target is $27.31, indicating a potential upside of 2.7% from the current levels.
