Conagra Brands Inc. (NYSE: CAG) is slated to report first quarter 2020 earnings results on Thursday, September 26, before the market opens. Analysts expect the company to report earnings of $0.39 per share on revenue of $2.48 billion. This compares to earnings of $0.47 per share on revenue of $1.83 billion reported a year earlier.
Conagra’s top line results are likely to benefit from the company’s strong product portfolio. The branded foods provider has been building its product line-up through a number of strategic acquisitions and divestments. Earlier this month, Conagra agreed to sell its Direct Store Delivery snacks business to Utz Quality Foods.
Conagra has also been making several investments to drive growth in its frozen and snacking business and this is expected to benefit the quarterly numbers. However, the results are likely to be impacted by business divestitures. The weakness in the Foodservice business is also likely to continue.
Conagra and its peers like General Mills (NYSE: GIS) have been struggling with higher input costs and this, along with negative currency impacts, could hurt earnings in the to-be-reported quarter.
From the first quarter of fiscal 2020, Conagra will no longer report Pinnacle as a standalone reporting segment. The business components comprising the Pinnacle segment will be allocated to one of the four Legacy Conagra reporting segments.
In the fourth quarter of 2019, Conagra missed earnings estimates. Adjusted EPS dropped 28% to $0.36. Revenue grew 33% to $2.61 billion.
For fiscal 2020, the company expects net sales growth of 13.5% to 14%. Total company organic net sales growth is now expected to be 1% to 1.5%. Adjusted earnings is expected to range from $2.08 to $2.18 per share.
Conagra’s stock has gained 37% thus far this year. The majority of analysts have rated it as Buy and the average price target is $32.38.
Most Popular
Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO
Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on
