Conagra Brands (CAG) tops Q1 2021 estimates; stock advances

Conagra Brands’ (NYSE: CAG) earnings and sales in the first quarter of fiscal 2021 surpassed the market’s estimates. Adjusted earnings grew 62.8% to $0.70 per share and sales increased 12.1% to $2.7 billion in Q1. The company’s earnings outlook for the second quarter of 2021 was in line with the analysts’ views. CAG stock rose about 2% in the pre-market trading hours.

“We exceeded our expectations on net sales, profitability, and de-leveraging, and continued to make investments to ensure the physical availability of our products, maintain momentum with consumers, and build brand health,” said CEO Sean Connolly.

For the second quarter of fiscal 2021, Conagra expects adjusted EPS to be between $0.70 and $0.74. Organic net sales growth is estimated to be in the range of 6% to 8%.

The company reaffirmed its fiscal 2022 algorithm; adjusted EPS of $2.66 to $2.76 and organic net sales growth (3-year CAGR ending fiscal 2022) of 1% to 2%.