Conagra Brands Lifted as Americans Stock Up on Snacks, Frozen Food

Companies and Brands

Published: June 30, 2020 9:55 am

Conagra Brands Inc. (NYSE: CAG) reported its fiscal fourth-quarter financial results before the markets opened on Tuesday. The company said that it had $0.75 in earnings per share (EPS) and $3.3 billion in revenue, which compares with consensus estimates of $0.66 in EPS and revenue of $3.11 billion. The same period of last year reportedly had EPS of $0.36 on $2.61 billion in revenue.

Fourth-quarter net sales increased 25.8% and organic net sales increased 21.5%, with double-digit growth in each of the company’s three retail segments. This was supported by strong e-commerce growth, significant consumer trial and solid repeat sales, and the initial launches of its fiscal 2021 innovation slate.

[in-text-ad]

In terms of its segments, the company reported net sales as follows:

Grocery & Snacks: up 44.1% to $1.5 billion
Refrigerated & Frozen: up 23.3% to $1.4 billion
International up 18.6% to $266 million.
Foodservice: down 27.9% to $193 million.

Cash and cash equivalents totaled $553.3 million at the end of the quarter, up from $236.6 million at the end of the previous fiscal year.

Looking ahead to the fiscal first quarter, the company expects to see organic net sales growth in the range of 10% to 13%, and EPS in the range of $0.54 to $0.59. The consensus estimates call for $0.54 in EPS and $2.52 billion in revenue for the coming year.

Conagra Brands stock traded up more than 2% early Tuesday at $34.56, in a 52-week range of $22.83 to $35.59. The consensus price target is $35.43.

ALSO READ: Telehealth Is Here to Stay: 4 Stocks to Buy Now With Huge Potential

Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)

If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.

Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.