Zacks Research Lowers Earnings Estimates for Conagra Brands

Conagra Brands (NYSE:CAG) – Zacks Research decreased their Q1 2027 earnings per share estimates for Conagra Brands in a report released on Wednesday, July 29th. Zacks Research analyst Team now forecasts that the company will post earnings of $0.32 per share for the quarter, down from their prior forecast of $0.40. Zacks Research currently has a “Strong Sell” rating on the stock. The consensus estimate for Conagra Brands’ current full-year earnings is $1.45 per share. Zacks Research also issued estimates for Conagra Brands’ Q2 2027 earnings at $0.39 EPS, Q3 2027 earnings at $0.36 EPS, Q4 2027 earnings at $0.39 EPS, Q1 2028 earnings at $0.33 EPS, Q2 2028 earnings at $0.40 EPS, Q3 2028 earnings at $0.37 EPS, Q4 2028 earnings at $0.40 EPS and FY2029 earnings at $1.61 EPS.

Conagra Brands (NYSE:CAG) last posted its quarterly earnings data on Wednesday, July 15th. The company reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.46 by $0.01. The company had revenue of $2.88 billion during the quarter, compared to analysts’ expectations of $2.89 billion. Conagra Brands had a positive return on equity of 10.44% and a negative net margin of 16.99%.Conagra Brands’s revenue for the quarter was up 3.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.56 earnings per share. Conagra Brands has set its FY 2027 guidance at 1.400-1.500 EPS.

Several other research analysts also recently issued reports on CAG. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of Conagra Brands from $14.00 to $12.00 and set a “hold” rating on the stock in a report on Thursday, June 18th. Morgan Stanley decreased their target price on Conagra Brands from $15.00 to $13.00 and set an “equal weight” rating on the stock in a research report on Friday, June 5th. Weiss Ratings lowered Conagra Brands from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, June 25th. Jefferies Financial Group cut their price target on Conagra Brands from $15.00 to $13.00 and set a “hold” rating for the company in a report on Wednesday, May 27th. Finally, Sanford C. Bernstein reiterated an “underperform” rating and issued a $12.00 price objective (down from $16.00) on shares of Conagra Brands in a research report on Wednesday, June 3rd. One investment analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and six have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average target price of $14.07.

Conagra Brands Price Performance

NYSE:CAG opened at $15.51 on Thursday. The stock has a market cap of $7.42 billion, a P/E ratio of -3.88 and a beta of -0.02. Conagra Brands has a one year low of $12.53 and a one year high of $20.32. The company has a fifty day moving average price of $13.79 and a 200 day moving average price of $15.58. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.90 and a quick ratio of 0.31.

Conagra Brands Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Thursday, July 30th will be paid a $0.175 dividend. The ex-dividend date of this dividend is Thursday, July 30th. This represents a $0.70 dividend on an annualized basis and a yield of 4.5%. Conagra Brands’s payout ratio is presently -35.00%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. State Street Corp lifted its stake in Conagra Brands by 2.3% during the second quarter. State Street Corp now owns 26,202,392 shares of the company’s stock worth $536,363,000 after purchasing an additional 588,435 shares during the period. Dimensional Fund Advisors LP grew its stake in shares of Conagra Brands by 9.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 19,323,789 shares of the company’s stock valued at $303,771,000 after purchasing an additional 1,701,624 shares during the period. Invesco Ltd. grew its stake in shares of Conagra Brands by 13.3% in the 4th quarter. Invesco Ltd. now owns 17,667,780 shares of the company’s stock valued at $305,829,000 after purchasing an additional 2,079,903 shares during the period. Morgan Stanley raised its holdings in shares of Conagra Brands by 18.5% in the 4th quarter. Morgan Stanley now owns 15,229,557 shares of the company’s stock worth $263,624,000 after buying an additional 2,376,823 shares in the last quarter. Finally, Ameriprise Financial Inc. raised its holdings in shares of Conagra Brands by 19.6% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,130,671 shares of the company’s stock worth $222,113,000 after buying an additional 1,984,873 shares in the last quarter. Institutional investors and hedge funds own 83.75% of the company’s stock.

Conagra Brands News Summary

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

• Positive Sentiment: Conagra eliminated the chief operating officer position following the COO’s retirement, a restructuring that could simplify management and reduce costs if execution improves. Conagra Brands Retires Its COO and Drops the Role Entirely
• Neutral Sentiment: One recent analysis suggested Conagra may now be fairly valued after its prior decline, potentially limiting downside but also reducing the case for a major near-term rebound. Conagra Stock May Be Fairly Valued After Its Slide
• Neutral Sentiment: An executive sold 6,045 shares, valued at approximately $86,323, to cover tax withholding after restricted-stock vesting. Because the sale was tax-related and represented only a portion of the executive’s holdings, it provides limited insight into management’s outlook. Conagra EVP Share Sale
• Negative Sentiment: Zacks Research cut its EPS forecasts across fiscal 2027 and 2028, including Q1 2027 to $0.32 from $0.40, Q2 2027 to $0.39 from $0.49, Q1 2028 to $0.33 from $0.44, Q2 2028 to $0.40 from $0.50, Q3 2028 to $0.37 from $0.42, and Q4 2028 to $0.40 from $0.46. Zacks maintained a “Strong Sell” rating, signaling weaker expected profitability than previously projected.
• Negative Sentiment: The broader consumer-staples sector is facing consumer resistance to additional price increases, threatening the pricing power that has supported sales and margins. Consumer Staples Estimates Fall
• Negative Sentiment: Conagra completed a $500 million offering of 5.400% senior notes. The financing provides liquidity but increases interest costs and reinforces concerns about the company’s leverage. Conagra $500 Million Senior Notes Offering

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.