PREVIEW: Conagra's rev, EPS seen down in report early Wednesday

Campbells Co

31/03/2026 19:17

** Shares of Conagra Brands CAG.N dipping 0.7% to $15.62 on Tues ahead of fiscal Q3 results due before the bell on Wednesday, as investors eye demand trends

** Packaged food maker expected to report qtrly rev of $2.76 bln, down ~3% y/y, and adj EPS of $0.40, down from $0.51 a yr ago, per LSEG

** In its prior qtr, the Birds Eye and Duncan Hines owner maintained its annual forecast but swung to a loss after a large writedown, citing falling volumes and strained consumer budgets

** Earlier this month, peer General Mills GIS.N reaffirmed its annual forecasts after a recent cut, as pressure on consumer spending and stiff competition muted demand

** And Campbell's Co CPB.O slashed its annual outlooks as it grapples with weak demand, and suspended its stock buyback program to focus on reducing debt

** Jefferies said in a food industry note last week that earnings pressure continues to build, driving rising dividend risk as reinvestment needs and volume softness constrain cash flow and balance sheet flexibility

** Citing CAG's stock trading around a 9% yield, Jefferies said a lack of meaningful cash flow improvement could force management to choose between a higher-cost refinancing, asset sales or a reassessment of the dividend

** CAG early Tues declared a qtrly dividend of 35 cents/sh for the 12th straight time

** With move on the session, CAG stock down ~10% YTD, underperforming ~2% decline in the S&P 500 Packaged Foods and Meats index .SPLRCFOOD and ~5% drop in the S&P 500 .SPX

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))