Conagra Brands, Inc.

New York Stock Exchange
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Somewhat Bullish +45

Earnings Previews: Conagra, Constellation Brands, Lamb Weston

AI-generated analysis

📅 Conagra Brands (CAG), Constellation Brands (STZ), and Lamb Weston Holdings (LW) are scheduled to report quarterly earnings before U.S. markets open on Thursday.

📉 Conagra's stock has dropped 31% year-to-date as revenue and adjusted EPS have declined for three consecutive quarters, though recent results met lowered expectations.

💰 Analysts project Conagra's fiscal 2024 first-quarter revenue at $2.96 billion and adjusted EPS of $0.60, with a median price target of $36.50 implying 36.2% upside.

🍺 Constellation Brands has gained 8.4% over the past year, driven by a strategic shift where Corona Light sales have replaced declining Bud Light volumes following an Elliott Management deal.

📈 Of 23 analysts covering Constellation, 20 hold Buy or Strong Buy ratings, with expectations for fiscal 2024 second-quarter revenue to reach $2.82 billion.

🥔 Lamb Weston acquired a majority stake in a joint venture with Meijer Frozen Foods, boosting May quarter revenue but causing an EPS hit that drove the stock down 20% recently.

🚀 Despite recent volatility, eight of nine analysts covering Lamb Weston hold Buy or Strong Buy ratings, forecasting full-year fiscal 2024 revenue growth of 27.3%.

💵 Conagra pays a 5.23% annual dividend yield, while Constellation offers a 1.42% yield and Lamb Weston offers a 1.21% yield based on current share prices.

Bullish Signals
  • Constellation Brands has added 8.4% to its share price over the past 12 months and is the largest publicly traded alcoholic beverage stock in the U.S. with a market cap of $45.3 billion.
  • Analysts expect Constellation Brands' fiscal 2024 second-quarter revenue to rise 6.0% year-over-year to $2.82 billion, driven by strong performance in its Corona Light brand.
  • Lamb Weston Holdings forecasts full fiscal year 2024 revenue growth of 27.3% and adjusted EPS growth of 13%, supported by the recent acquisition of a majority stake in a joint venture.
  • Conagra Brands offers a high dividend yield of 5.23% and analysts see significant upside potential, with a median price target of $36.50 representing 36.2% upside from current levels.
  • Constellation Brands has secured a strategic deal with activist investor Elliott Management to stabilize its portfolio following the Bud Light boycott, successfully pivoting sales toward Corona Light.
Risk Factors
  • Conagra Brands' share price has fallen by 31% year-to-date and revenue and adjusted EPS have declined for three consecutive quarters due to slipping sales volumes.
  • Lamb Weston Holdings' stock has dropped approximately 20% over the past three months following an earnings miss caused by the acquisition of a joint venture stake impacting EPS.
  • Conagra Brands faces a challenging outlook with consensus estimates predicting a 0.6% sequential revenue decline and a 3.5% drop in adjusted EPS for the upcoming quarter.
Full Analysis
This article previews upcoming quarterly earnings reports for three major consumer staples companies: Conagra Brands (CAG), Constellation Brands (STZ), and Lamb Weston Holdings (LW). The piece provides detailed analyst expectations, stock performance metrics, and valuation multiples for each ticker ahead of their scheduled reporting dates. It highlights that while no notable earnings were released recently, these specific companies are set to report results before U.S. markets open on Thursday. Conagra Brands has faced significant headwinds with its share price falling 18% over the past year and 31% year-to-date. Revenue and adjusted EPS have declined for three consecutive quarters, though recent earnings met lowered expectations. The company's CEO noted slipping sales volumes amidst falling prices, a trend affecting the broader industry. Analysts maintain a mix of Hold, Buy, and Strong Buy ratings, with a median price target suggesting substantial upside potential from current levels. Constellation Brands, the largest publicly traded alcoholic beverage stock in the U.S., has shown resilience with an 8.4% gain over the past 12 months. The company is navigating post-boycott dynamics where sales of its Bud Light brand have been largely replaced by Corona Light following a strategic deal with activist investor Elliott Management. Analysts are optimistic, with 20 out of 23 covering the stock holding Buy or Strong Buy ratings, and expect revenue and EPS growth in the upcoming quarter. Lamb Weston Holdings, the nation's largest frozen potato producer, recently acquired a majority stake in a joint venture which boosted May quarter revenue but impacted EPS. Consequently, the stock has fallen about 20% over the past three months as investors reacted to the earnings hit. Despite this short-term pressure, analysts remain bullish with eight out of nine holding Buy or Strong Buy ratings, forecasting significant year-over-year growth in revenue and adjusted EPS for the full fiscal year.