What to Watch For in Conagra Brands Earnings

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Conagra Brands Inc. (NYSE: CAG) is scheduled to release its fiscal second-quarter financial results before the markets open on Thursday. The Thomson Reuters consensus estimates are $0.55 in earnings per share (EPS) and $2.41 billion in revenue. In the same period of last year, the company said it had $0.55 in EPS and $2.17 billion in revenue.

In the prior quarter, Conagra said that it expected to see EPS in the range of $0.57 to $0.60, with net sales flat to slightly down, for the second quarter.

In the first quarter, net sales grew 1.7% and organic net sales, excluding the sale of the Trenton production facility, grew 1.2%, with growth in all four operating segments.

In terms of its segments, Conagra reported as follows:

  • The Refrigerated & Frozen segment continued its momentum, with 3.2% net sales growth and organic net sales growth of 1.4%. The segment has delivered organic net sales growth for five consecutive quarters.
  • Grocery & Snacks reported another quarter of organic net sales growth, led by the snacks businesses.

Excluding Wednesday’s move, Conagra had underperformed the broad markets, with its stock down 24% in the past 52 weeks. In just the past six months, the stock was down 25%.

A few analysts weighed in on Conagra ahead of the report:

  • Jefferies has a Buy rating with a $44 price target.
  • Credit Suisse has a Hold rating and a $35 price target.
  • Sanford Bernstein has an Underperform rating.
  • Goldman Sachs has a Buy rating with a $42 target.
  • UBS has a Buy rating with a $40 price target.

Shares of Conagra were last seen up about 4% at $29.63 on Wednesday, with a consensus analyst price target of $39.92. The stock has a 52-week trading range of $28.41 to $39.43.

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