Conagra Brands (NYSE:CAG) Posts Quarterly Earnings Results

Conagra Brands (NYSE:CAG) announced its quarterly earnings data on Wednesday. The company reported $0.39 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.01), FiscalAI reports. Conagra Brands had a positive return on equity of 10.59% and a negative net margin of 0.87%.The business had revenue of $2.79 billion during the quarter, compared to the consensus estimate of $2.76 billion. During the same quarter in the previous year, the firm posted $0.51 earnings per share. The company’s revenue was down 1.9% compared to the same quarter last year.

Here are the key takeaways from Conagra Brands’ conference call:

• Conagra returned to organic net sales growth of 2.4% in Q3, driven by strong frozen volume recovery and snacks growth that outpaced its category, with frozen regaining meaningful market share after last year’s supply constraints.
• Free cash flow conversion was raised to approximately 105%, supporting plans to reduce net debt by about $800 million, continue investments, and maintain the dividend—underscoring disciplined capital allocation and deleveraging.
• Profitability and earnings fell versus last year: adjusted operating margin declined ~213 basis points to 10.6% and adjusted EPS was $0.39 (down $0.12); FY adjusted EPS guidance was narrowed to the low end (~$1.70), partly due to a $0.10 headwind from the Ardent Mills JV.
• Pricing and mix contributed +1.9% while volumes were up 0.5% in Q3, with management noting inflation-justified pricing across staples and select snack brands where elasticities have been better than historical norms—indicating pricing power but mixed volume dynamics.

Conagra Brands Stock Down 1.2%

NYSE CAG opened at $15.54 on Thursday. Conagra Brands has a 1 year low of $15.03 and a 1 year high of $27.68. The stock has a market capitalization of $7.43 billion, a PE ratio of -70.61 and a beta of 0.04. The company has a debt-to-equity ratio of 0.80, a current ratio of 0.89 and a quick ratio of 0.28. The business’s 50-day moving average is $17.84 and its 200 day moving average is $17.76.

Conagra Brands Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Thursday, April 30th will be issued a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 9.0%. The ex-dividend date is Thursday, April 30th. Conagra Brands’s dividend payout ratio is currently -636.36%.

Key Headlines Impacting Conagra Brands

Here are the key news stories impacting Conagra Brands this week:

• Positive Sentiment: Revenue beat and category strength — Conagra reported $2.79B in Q3 revenue, topping estimates, with organic growth driven by higher price/mix and modest volume gains in frozen and snacks. This shows demand resilience in core categories. Read More.
• Positive Sentiment: Cash returns remain a focus — The company declared a quarterly $0.35 dividend (high yield ~8–9%), and management emphasizes free?cash?flow conversion that supports the payout and buyback capacity. That makes CAG attractive to income investors even amid near?term headwinds. Read More.
• Positive Sentiment: Analyst/technical bulletin points to value support — Some outlets flagged technical buying at recent lows and institutional accumulation, arguing the share price is at deep?value levels vs. historical multiples. This can blunt downside if the company stabilizes. Read More.
• Neutral Sentiment: Guidance narrowed (mixed implications) — Management narrowed revenue and EPS ranges, giving more visibility but also lowering the EPS outlook due to expected cost pressure; that reduces uncertainty but confirms weaker near?term profitability. Read More.
• Neutral Sentiment: Mixed analyst stance — Street reactions are varied: some see the quarter as evidence the turnaround can survive headwinds, while others remain cautious and have trimmed forecasts; overall sentiment is cautious rather than uniformly bearish. Read More.
• Negative Sentiment: EPS miss and margin compression — Q3 EPS of $0.39 missed consensus by $0.01, and margins shrank (negative net margin reported), signaling profit pressure from inflation and cost passthrough limits. Read More.
• Negative Sentiment: Trimmed full?year profit forecast — Management lowered the annual profit outlook citing rising costs, which is the main catalyst for the share weakness as it reduces near?term earnings visibility. Read More.
• Negative Sentiment: Analyst price?target cuts and conservative ratings — Jefferies cut its PT to $15 (hold) and other forecasters pared expectations ahead of/after the print, adding selling pressure and limiting upside near term. Read More.

Institutional Investors Weigh In On Conagra Brands

A number of large investors have recently made changes to their positions in the business. EP Wealth Advisors LLC raised its holdings in shares of Conagra Brands by 3.3% during the second quarter. EP Wealth Advisors LLC now owns 23,984 shares of the company’s stock valued at $491,000 after acquiring an additional 772 shares in the last quarter. O Shaughnessy Asset Management LLC boosted its holdings in Conagra Brands by 3.2% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 25,135 shares of the company’s stock valued at $435,000 after acquiring an additional 788 shares in the last quarter. Public Employees Retirement System of Ohio increased its position in Conagra Brands by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 148,681 shares of the company’s stock valued at $2,722,000 after purchasing an additional 922 shares during the period. NewEdge Advisors LLC increased its position in Conagra Brands by 4.2% during the 1st quarter. NewEdge Advisors LLC now owns 23,541 shares of the company’s stock valued at $628,000 after purchasing an additional 954 shares during the period. Finally, Scotia Capital Inc. raised its holdings in Conagra Brands by 1.3% in the 3rd quarter. Scotia Capital Inc. now owns 74,317 shares of the company’s stock worth $1,361,000 after purchasing an additional 970 shares in the last quarter. 83.75% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

CAG has been the topic of a number of analyst reports. Bank of America decreased their target price on shares of Conagra Brands from $18.00 to $17.00 and set an “underperform” rating on the stock in a research report on Monday, December 22nd. Zacks Research upgraded Conagra Brands from a “strong sell” rating to a “hold” rating in a report on Friday, February 20th. Morgan Stanley reissued an “overweight” rating on shares of Conagra Brands in a research note on Wednesday, February 18th. Royal Bank Of Canada reduced their price target on Conagra Brands from $22.00 to $20.00 and set a “sector perform” rating on the stock in a research report on Monday, December 22nd. Finally, TD Cowen decreased their price target on Conagra Brands from $18.00 to $14.00 and set a “hold” rating on the stock in a research note on Wednesday, March 25th. One analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $17.79.

About Conagra Brands

Conagra Brands, Inc is a leading packaged foods company based in Chicago, Illinois, with a broad portfolio of shelf-stable, frozen and refrigerated foods marketed under familiar brands. The company develops, produces and distributes a wide range of consumer food products, serving both retail grocery and foodservice channels. Conagra’s product lineup includes frozen entrees, snacks, condiments, baking goods and desserts, providing convenient meal solutions for consumers across North America and select international markets.

Among its well-known brands are Birds Eye, Healthy Choice, Lean Cuisine, Marie Callender’s and Banquet in the frozen foods category, as well as Hunt’s sauces, Orville Redenbacher’s popcorn, Slim Jim meat snacks and Reddi-wip toppings.