- Adjusted EPS Miss: Conagra’s adjusted earnings per share (EPS) came in at 53 cents, missing the estimate of 60 cents. This is a decline from 66 cents in the previous year.
- Net Sales Decline: The company’s net sales dropped to $2.79 billion, a 3.8% decrease compared to last year, and below the estimate of $2.84 billion.
- Grocery & Snacks: This segment reported net sales of $1.18 billion, a slight decline of 1.7% year-over-year, matching the estimated figure.
- Refrigerated & Frozen: Net sales in this segment decreased by 5.7% year-over-year to $1.09 billion, falling short of the $1.12 billion estimate.
- International Sales: International net sales were $259.1 million, down 0.4% from the previous year, missing the estimate of $262.7 million.
- Foodservice Decline: Foodservice net sales totaled $266.7 million, a significant 7.8% drop year-over-year, missing the estimate of $280.6 million.
- Capital Expenditures: The company expects capital expenditures to be approximately $450 million for the year.
- Inflation Forecast: Full-year net inflation is expected to be around 3.2%, accounting for input cost inflation including hedging and other sourcing benefits.
- Guidance Reaffirmed: Conagra reaffirmed its guidance for fiscal 2025, expressing confidence in the underlying momentum of its business.
- Analyst Recommendations: The stock has 3 buy ratings, 14 hold ratings, and 1 sell rating.
Conagra Foods on Smartkarma
Analysts on Smartkarma are bullish on Conagra Foods, with a focus on key drivers of growth and investment opportunities. Baptista Research highlights Conagra’s revamping of marketing strategies and emphasis on product innovation as major factors influencing its future price. Additionally, Baptista Research undertakes an independent valuation using a Discounted Cash Flow (DCF) methodology to assess the company’s prospects.
Value Investors Club also sees Conagra as an attractive investment prospect, citing reasons such as its undervalued stock, strong brand portfolio, experienced management team, and debt reduction focus. The analysts predict a potential annualized return of 10-12% over the next three years with minimal downside risk, owing to the company’s historically cheap valuation and the defensibility of its business model.
A look at Conagra Foods Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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, a leading packaged foods manufacturer, seems to have a promising long-term outlook based on the Smartkarma Smart Scores. With a strong Dividend score of 4, the company is likely to provide consistent returns to its investors. Additionally, its Momentum score of 4 suggests that the company is showing positive growth trends and market performance, indicating a potentially bright future ahead. While the Growth and Resilience scores are slightly lower at 2, Conagra Foods‘ overall outlook appears positive, especially considering its Value score of 3, indicating that the company is trading at a reasonable value.
Conagra Foods offers a diverse range of food products to various consumer segments, including meals, snacks, and specialty potato products. With a solid Dividend score and positive Momentum, investors may find Conagra Foods to be an appealing long-term investment option. Although the Growth and Resilience scores are not as high, the company’s overall outlook, supported by its Value score, suggests that it could be a stable and potentially rewarding investment choice in the packaged foods industry.
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.
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