- Conagra’s 3Q adjusted EPS outperformed estimates, coming in at 69c compared to the estimated 65c.
- The company’s net sales were $3.03 billion, a decrease of 1.7% year on year (y/y), but slightly above the estimated $3.01 billion.
- Grocery and Snacks division reported net sales of $1.29 billion, an increase of 3.4% y/y, beating the estimated $1.21 billion.
- Refrigerated and Frozen division reported net sales of $1.20 billion, down 8.1% y/y, and below the estimated $1.25 billion.
- International net sales reached $271.7 million, up 4.6% y/y, but slightly below the estimated $273.6 million.
- Foodservice net sales were $272.8 million, a slight decrease of 0.9% y/y, and below the estimated $281.1 million.
- Organic net sales decreased by 2%, which is better than the estimated decrease of 2.65%.
- Adjusted operating margin was 16.4%, compared to 16.9% y/y, but above the estimated 15.7%.
- Conagra is increasing its fiscal 2024 adjusted operating margin guidance and is reaffirming its organic net sales and adjusted EPS guidance.
- The company has received 2 buys, 15 holds, and 1 sell rating from analysts.
Conagra Foods on Smartkarma
According to a recent report by Baptista Research on Smartkarma, Conagra Foods has delivered a mixed result in the recent quarter. While its revenues were below market expectations, the company managed to surpass the analyst consensus in terms of earnings. However, the report also highlights that Conagra achieved impressive gains in adjusted gross margin and adjusted operating margin, resulting in a 16% increase in adjusted earnings per share.
Despite facing challenges in the single-serve meals category, Conagra Foods has maintained its unit share in key categories, showcasing the strength of its brands over the long term. The report also discusses the company’s emphasis on consumer behavior shift and how it could potentially drive top-line growth in the future. With top independent analysts publishing research on companies like Conagra Foods on Smartkarma, investors can access valuable insights to make informed investment decisions.
A look at Conagra Foods Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| 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
According to the Smartkarma Smart Scores, the long-term outlook for Conagra Foods is looking positive. With a score of 4 for both value and dividend, the company is showing strength in these areas. This means that Conagra Foods is considered a good value for investors and also has a strong track record of paying dividends to its shareholders.
The company also scored a 3 for growth, indicating that it has potential for future growth. However, its resilience score of 2 suggests that it may not be as strong in overcoming challenges or adapting to changes in the market. Nevertheless, Conagra Foods scored a solid 4 for momentum, which means that it has been performing well in the recent past.
Conagra Foods is a leading manufacturer and marketer of packaged foods for retail consumers, restaurants, and institutions. With a wide range of food products, including meals, snacks, and seasonings, the company has established itself as a trusted brand in the industry. Based on its Smartkarma Smart Scores, Conagra Foods appears to be a promising investment with strong value and dividend factors, and potential for growth in 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.
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