Packaged food maker Conagra Q1 adjusted EPS beats estimates, reaffirms 2026 guidance

Conagra Brands

01/10/2025 12:55

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Overview

Conagra fiscal Q1 net revenue falls 5.8%, but in-line with analyst expectations

Adjusted EPS beats analyst estimates

Company reaffirms fiscal 2026 guidance amidst inflationary pressures

Outlook

Conagra reaffirms fiscal 2026 organic net sales growth of (1)% to 1%

Company expects fiscal 2026 adjusted EPS between $1.70 and $1.85

Conagra anticipates fiscal 2026 interest expense of $390 mln

Company expects fiscal 2026 adjusted effective tax rate of 24%

Result Drivers

NET SALES DECLINE - Net sales fell 5.8% to $2.63 bln, impacted by a 5.1% decrease from M&A and a 0.6% decline in organic net sales

VOLUME DECREASE - Organic net sales fell 0.6% driven by a 1.2% decrease in volume, despite a 0.6% positive impact from price/mix, including favorable trade expense timing and product mix

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Meet
$2.63 bln
$2.62 bln (13 Analysts)
Q1 Adjusted EPS
Beat
$0.39
$0.33 (14 Analysts)
Q1 EPS
$0.34
Q1 Adjusted EBIT Margin
11.8%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 15 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the food processing peer group is "buy."

Wall Street's median 12-month price target for Conagra Brands Inc is $21.00, about 12.8% above its September 30 closing price of $18.31

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn9WmsN9a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)