- Conagra’s adjusted earnings per share (EPS) for the second quarter stood at 70 cents, slightly below the previous year’s 71 cents but surpassing analysts’ estimates of 68 cents.
- Net sales amounted to $3.20 billion, marking a slight decrease of 0.4% year-over-year, yet exceeding expectations of $3.15 billion.
- The Grocery & Snacks segment saw net sales of $1.32 billion, achieving a 2% increase from the previous year and outperforming the estimated $1.28 billion.
- Net sales for the Refrigerated & Frozen segment were flat at $1.34 billion, aligning with the previous year’s figures but surpassing the estimate of $1.31 billion.
- International net sales fell 13% year-over-year to $243.4 million, falling short of the projected $281.7 million.
- Foodservice net sales slightly declined by 0.9% year-over-year to $292.2 million, though they exceeded the estimate of $281.1 million.
- Conagra maintains its forecast for capital expenditures to be approximately $450 million for the fiscal year 2025.
- CEO Sean Connolly stated that the company’s investments have resulted in strong market share performance, despite ongoing consumer challenges.
- Connolly warned of future headwinds such as higher-than-expected inflation and unfavorable foreign exchange rates, prompting an updated fiscal 2025 outlook.
- Analyst recommendations for Conagra include 4 buys, 12 holds, and 2 sells.
Conagra Foods on Smartkarma
Analysts on Smartkarma are closely monitoring Conagra Foods for potential investment opportunities. Baptista Research recently released a report titled “Conagra Brands Inc.: Revamping Marketing Strategies & Focusing On Product Innovation! – Major Drivers,” highlighting the company’s transitional phase in consumer purchasing behavior and pricing adaptation. CEO Sean Connolly emphasized the gradual normalization of the operating environment, with Baptista Research conducting an independent valuation using a Discounted Cash Flow (DCF) methodology.
Similarly, Value Investors Club published an insight on Conagra Brands Inc, identifying it as an undervalued stock with a strong brand portfolio, experienced management team, and focus on debt reduction. This analysis suggests that investing in Conagra could yield a 10-12% annualized return over the next three years, supported by the company’s historically cheap valuation and business defensibility. Both reports provide valuable insights for investors looking to capitalize on Conagra Foods‘ potential in the market.
A look at Conagra Foods Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Conagra Foods, known for its diverse range of packaged food products, has received a mix of Smart Scores indicating its long-term outlook. With a high score in the Dividend category and a solid score in Value, Conagra Foods seems to be well-positioned to reward its investors with consistent payouts. However, the company falls short in Resilience and Growth scores, which could indicate potential challenges in adapting to market changes and expanding its market share. The moderate Momentum score suggests a steady but not rapid pace of growth for the company.
Overall, Conagra Foods appears to be a reliable choice for investors seeking stable dividends and value in the packaged food industry. While it may face some hurdles in terms of growth and resilience, its strong dividend score could make it an attractive option for those looking for steady returns over the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
