Conagra Brands, Inc.

New York Stock Exchange
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Bearish -50

Unveiling Conagra Brands (CAG) Q3 Outlook: Wall Street Estimates for Key Metrics

AI-generated analysis

📉 Wall Street analysts forecast Conagra Brands (CAG) Q3 EPS of $0.40, representing a 21.6% year-over-year decline.

💰 Revenue is expected to be $2.77 billion, down 2.6% from the same quarter last year.

📊 Analyst consensus estimates for EPS have decreased by 0.5% over the past 30 days.

🍔 Grocery & Snacks sales are projected at $1.15 billion, a 7.6% decrease compared to the prior-year quarter.

🍳 Foodservice revenue is estimated at $258.40 million, showing a 0.9% increase year-over-year.

🌍 International sales are expected to reach $223.59 million, essentially flat at -0.1% versus last year.

❄️ Refrigerated & Frozen sales are forecasted at $1.14 billion, up 2.1% from the previous year.

💸 Price/Mix for the Foodservice segment is estimated at 2.3%, down from 3.7% a year ago.

🌐 International Price/Mix is projected at 1.6%, significantly lower than last year's reported 4.4%.

🏪 Adjusted Operating Profit for Grocery & Snacks is predicted at $205.51 million, compared to $242.40 million previously.

❄️ Refrigerated & Frozen operating profit is expected at $119.54 million, a slight drop from $124.00 million last year.

🍽 Foodservice adjusted operating profit forecast stands at $27.18 million versus $28.60 million the prior year.

🌏 International adjusted operating profit is estimated at $30.78 million, compared to $33.40 million last year.

📉 Conagra Brands shares have fallen 18.9% in the past month, underperforming the S&P 500 decline of 6.2%.

⚖️ The stock currently holds a Zacks Rank #3 (Hold), suggesting expected near-term performance mirroring the overall market.

Bullish Signals
  • Conagra Brands' Sales-Frozen and Refrigerated segment is forecasted to reach $1.14 billion, representing a year-over-year growth of 2.1%. The Price/Mix estimate for the Foodservice segment stands at 2.3%, which could help stabilize margins despite broader revenue challenges. International Sales are projected at $223.59 million with a stable -0.1% change from the prior year, showing resilience in that market. Analysts have forecast Adjusted Operating Profit for Refrigerated & Frozen at $119.54 million, indicating continued operational performance in that category.
  • The Foodservice segment sales are estimated at $258.40 million with a slight positive growth of 0.9% year-over-year. Price/Mix - International is expected to settle at 1.6%, compared to the higher reported figure of 4.4% last year, suggesting improved pricing efficiency in that region.
  • The company provides clear visibility into segment performance with detailed analyst consensus estimates across Grocery, Frozen, and Foodservice categories.
Risk Factors
  • Conagra Brands (CAG) is projected to report quarterly earnings of $0.40 per share, marking a significant decline of 21.6% compared to the same period last year.
  • Revenues are forecasted to be $2.77 billion, representing a year-over-year decrease of 2.6%, indicating potential top-line weakness.
  • The consensus EPS estimate has been revised 0.5% lower over the last 30 days, suggesting deteriorating analyst sentiment toward the stock.
  • 'Sales- Grocery & Snacks' are predicted to fall by -7.6% year-over-year, reaching $1.15 billion and signaling challenges in core product categories.
  • The company reported 'Adjusted Operating Profit (loss)- Grocery & Snacks' of $242.40 million last year versus the current estimate of $205.51 million, reflecting a notable compression in operating margins.
  • 'Adjusted Operating Profit (loss)- Refrigerated & Frozen' is expected to decline to $119.54 million from the year-ago value of $124.00 million.
  • The consensus estimate for 'Price/Mix - Foodservice' stands at 2.3%, a significant drop from the year-ago figure of 3.7%, indicating pricing pressure or volume erosion.
  • Shares of Conagra Brands have underperformed significantly with returns of -18.9% over the past month compared to the Zacks S&P 500 composite's -6.2% change.
  • The combined assessment for 'Adjusted Operating Profit (loss)- International' shows a decline from $33.40 million reported last year to an estimated $30.78 million.
Full Analysis
Wall Street analysts forecast Conagra Brands (CAG) to report quarterly earnings of $0.40 per share in its upcoming third-quarter release, marking a 21.6% decline from the prior-year period. Revenue is expected to reach $2.77 billion, which represents a 2.6% decrease year-over-year. Over the last 30 days, the consensus earnings per share estimate has been revised downward by 0.5%, reflecting analysts' collective reevaluation of initial projections ahead of the company's earnings announcement. Research indicates that trends in earnings estimate revisions often correlate with short-term stock price performance, highlighting the importance of these adjustments for investors assessing potential market reactions to the financial report. Analysts project specific revenue segments will show mixed performance, with 'Sales- Grocery & Snacks' estimated at $1.15 billion, a 7.6% decline from the year-ago quarter, and 'Sales- Refrigerated & Frozen' forecasted at $1.14 billion, showing a 2.1% increase. Conversely, 'Sales- Foodservice' is expected to reach $258.40 million with a slight 0.9% year-over-year growth, while 'Sales- International' is anticipated at $223.59 million with minimal change of -0.1%. Price/mix metrics also reflect this divergence, with 'Price/Mix - Foodservice' estimated at 2.3% compared to the year-ago figure of 3.7%, and 'Price/Mix - International' projected at 1.6% versus 4.4% last year. Profitability estimates indicate declines across most divisions for the upcoming quarter. Adjusted Operating Profit for 'Grocery & Snacks' is expected to be $205.51 million, down from $242.40 million in the same period last year, while 'Refrigerated & Frozen' segment profit is forecasted at $119.54 million versus $124.00 million previously. The 'Foodservice' division is predicted to generate $27.18 million in adjusted operating profit compared to $28.60 million last year, and the 'International' segment is estimated to produce $30.78 million against $33.40 million reported previously. Market performance metrics show Conagra Brands shares have declined 18.9% over the past month, significantly underperforming the Zacks S&P 500 composite which saw a -6.2% change during the same timeframe. The company currently holds a Zacks Rank of #3, classified as a Hold, with expectations that CAG will mirror overall market performance in the near future based on current analyst assessments and historical data.