Packaged foods company Conagra Brands (NYSE: CAG) will be announcing earnings results this Thursday before market open. Here’s what investors should know.
Conagra missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $2.84 billion, down 6.3% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ gross margin estimates.
Is Conagra a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Conagra’s revenue to decline 2.6% year on year to $2.83 billion, in line with the 2.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.61 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Conagra has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Conagra’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. McCormick posted flat year-on-year revenue, meeting analysts’ expectations, and General Mills reported a revenue decline of 3.3%, falling short of estimates by 0.5%. McCormick traded up 3.6% following the results while General Mills was down 5.6%.
Read our full analysis of McCormick’s results here and General Mills’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 2.1% on average over the last month. Conagra is down 7.7% during the same time and is heading into earnings with an average analyst price target of $24.22 (compared to the current share price of $20.67).
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