What To Expect From Conagra's (CAG) Q2 Earnings

Kayode Omotosho /
2024/07/10 3:00 am EDT

Packaged foods company Conagra Brands (NYSE:CAG) will be reporting results tomorrow before market hours. Here's what to look for.

Conagra met analysts' revenue expectations last quarter, reporting revenues of $3.03 billion, down 1.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts' organic revenue growth estimates and a decent beat 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 1.4% year on year to $2.93 billion, a reversal from the 2.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.

Conagra Total Revenue

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 four times over the last two years.

Looking at Conagra's peers in the shelf-stable food 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 Simply Good Foods reported revenues up 3.1%, in line with consensus estimates. McCormick traded up 4.8% following the results while Simply Good Foods's stock price was unchanged.

Read our full analysis of McCormick's results here and Simply Good Foods's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the shelf-stable food stocks have fared somewhat better, they have not been spared, with share prices down 3.9% on average over the last month. Conagra is down 1.7% during the same time and is heading into earnings with an average analyst price target of $31.7 (compared to the current share price of $28.74).

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