Conagra Brands (NYSE:CAG) Posts Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Conagra Brands (NYSE:CAG) announced its quarterly earnings results on Wednesday. The company reported $0.39 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.01), FiscalAI reports. The firm had revenue of $2.79 billion for the quarter, compared to analyst estimates of $2.76 billion. Conagra Brands had a positive return on equity of 10.15% and a negative net margin of 0.39%.The business’s revenue was down 1.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.51 earnings per share.

Here are the key takeaways from Conagra Brands’ conference call:

• Conagra returned to organic net sales growth of 2.4% in Q3, driven by strong frozen volume recovery and snacks growth that outpaced its category, with frozen regaining meaningful market share after last year’s supply constraints.
• Free cash flow conversion was raised to approximately 105%, supporting plans to reduce net debt by about $800 million, continue investments, and maintain the dividend—underscoring disciplined capital allocation and deleveraging.
• Profitability and earnings fell versus last year: adjusted operating margin declined ~213 basis points to 10.6% and adjusted EPS was $0.39 (down $0.12); FY adjusted EPS guidance was narrowed to the low end (~$1.70), partly due to a $0.10 headwind from the Ardent Mills JV.
• Pricing and mix contributed +1.9% while volumes were up 0.5% in Q3, with management noting inflation-justified pricing across staples and select snack brands where elasticities have been better than historical norms—indicating pricing power but mixed volume dynamics.

Conagra Brands Price Performance

NYSE CAG opened at $15.71 on Friday. Conagra Brands has a twelve month low of $15.03 and a twelve month high of $27.68. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.28 and a current ratio of 0.90. The stock has a market capitalization of $7.51 billion, a PE ratio of -157.03 and a beta of 0.04. The stock has a 50-day simple moving average of $17.81 and a 200 day simple moving average of $17.74.

Conagra Brands Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Investors of record on Thursday, April 30th will be issued a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 8.9%. The ex-dividend date is Thursday, April 30th. Conagra Brands’s dividend payout ratio (DPR) is -636.36%.

Conagra Brands News Summary

Here are the key news stories impacting Conagra Brands this week:

• Positive Sentiment: Organic sales growth and revenue resilience: Conagra reported organic growth driven by frozen and snacks volumes and slightly beat revenue estimates ($2.79B). These signs underpin near‑term stability in core categories. Conagra Returns to Organic Sales Growth
• Positive Sentiment: Strong cash flow and a high dividend yield make the stock attractive to income investors; some commentators view the current valuation as deep value after a large multi‑year decline. Conagra Stock Yields Nearly 9% After a 60% Decline—Time to Buy?
• Neutral Sentiment: Mixed quarter: revenue beat but EPS missed slightly ($0.39 vs. $0.40 est.) and management narrowed full‑year guidance — results are not a clear cut trigger for directional moves until guidance clarity improves. Conagra Brands expects weak annual profit
• Neutral Sentiment: Some analysts still see upside/maintain neutral to positive ratings (BNP Paribas, Barclays among those keeping constructive views), so the sell‑side reaction is mixed even as many lower targets. These Analysts Slash Their Forecasts On Conagra Brands After Q3 Results
• Negative Sentiment: Broad wave of price‑target cuts: multiple firms cut targets (examples: Goldman to $15, Wells Fargo to $14, Sanford Bernstein to $16, Morgan Stanley to $17, Evercore to $18, UBS to $16), signaling reduced sell‑side expectations and adding selling pressure. Conagra Brands Price Target Lowered at Evercore (example)
• Negative Sentiment: Margin and guidance risk: management narrowed guidance and cited inflation/cost pressures that compress margins and drove the EPS revision — the profit outlook remains the main near‑term risk. Conagra narrows guidance
• Negative Sentiment: Governance/ transparency flag: a report noted no insider trading plans and raised questions about transparency/management confidence, which can amplify investor caution. Conagra’s Quiet Quarter: No Insider Trading Plans Raise Questions

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on CAG. The Goldman Sachs Group lowered their target price on Conagra Brands from $17.00 to $15.00 and set a “sell” rating for the company in a research note on Thursday. Deutsche Bank Aktiengesellschaft decreased their target price on Conagra Brands from $18.00 to $14.00 and set a “hold” rating for the company in a research note on Monday. UBS Group lowered their price target on shares of Conagra Brands from $20.00 to $16.00 and set a “neutral” rating for the company in a research report on Thursday. TD Cowen cut their target price on Conagra Brands from $18.00 to $14.00 and set a “hold” rating on the stock in a research note on Wednesday, March 25th. Finally, Morgan Stanley lowered their price objective on shares of Conagra Brands from $19.00 to $17.00 and set an “equal weight” rating on the stock in a research note on Thursday. Two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, Conagra Brands presently has an average rating of “Reduce” and an average price target of $16.27.

Institutional Trading of Conagra Brands

A number of hedge funds have recently modified their holdings of the company. NewEdge Advisors LLC raised its holdings in shares of Conagra Brands by 4.2% in the first quarter. NewEdge Advisors LLC now owns 23,541 shares of the company’s stock valued at $628,000 after buying an additional 954 shares during the last quarter. United Services Automobile Association bought a new stake in shares of Conagra Brands during the 1st quarter valued at $225,000. Empowered Funds LLC boosted its holdings in Conagra Brands by 5.9% during the first quarter. Empowered Funds LLC now owns 36,356 shares of the company’s stock worth $970,000 after buying an additional 2,038 shares during the last quarter. Woodline Partners LP increased its stake in Conagra Brands by 40.7% in the first quarter. Woodline Partners LP now owns 40,326 shares of the company’s stock valued at $1,075,000 after purchasing an additional 11,664 shares in the last quarter. Finally, Gamco Investors INC. ET AL raised its stake in Conagra Brands by 3.9% during the 2nd quarter. Gamco Investors INC. ET AL now owns 50,450 shares of the company’s stock worth $1,033,000 after buying an additional 1,900 shares during the period. Institutional investors own 83.75% of the company’s stock.

About Conagra Brands

Conagra Brands, Inc is a leading packaged foods company based in Chicago, Illinois, with a broad portfolio of shelf-stable, frozen and refrigerated foods marketed under familiar brands. The company develops, produces and distributes a wide range of consumer food products, serving both retail grocery and foodservice channels. Conagra’s product lineup includes frozen entrees, snacks, condiments, baking goods and desserts, providing convenient meal solutions for consumers across North America and select international markets.

Among its well-known brands are Birds Eye, Healthy Choice, Lean Cuisine, Marie Callender’s and Banquet in the frozen foods category, as well as Hunt’s sauces, Orville Redenbacher’s popcorn, Slim Jim meat snacks and Reddi-wip toppings.