Categories Earnings, Retail

Will Conagra Brands post upbeat earnings in Q1?

Conagra Brands (CAG) is set to report first-quarter results on Thursday before the market opens. The packaged food company is expected to report earnings and revenue above analysts’ expectations as investors will be looking forward to any updates on the Pinnacle Foods (PF) acquisition.

Analysts, on an average, expect Conagra to earn $0.49 per share for the first quarter compared to the previous year’s reported profit of $0.46 per share. Topline is estimated to increase 2.50% to $1.85 billion. Majority of the analysts recommend a “strong buy” or “buy” rating with an average price target of $42.55.

Favorable price/mix, strong supply chain realized productivity and recent acquisitions are likely to the company’s results this quarter. Investors expect Conagra to report first-quarter results ahead of its adjusted EPS guidance of $0.46 to $0.49 and net sales growth estimate of 2% to 2.5%.

For the recent fourth-quarter results, Conagra posted a 54% dip in earnings due to tax expense. Net sales rose by 5.6% helped by the recent acquisitions and foreign exchange. Organic net sales rose 2% as both the domestic retail segments growth showed strength in pricing and mix.

For the fiscal year 2019, the company has guided sales growth of 0.5% to 1.5%. Meanwhile adjusted gross margin is expected to grow 29.7% to 30%. The company’s three-year standalone fiscal 2020 financial algorithm, which uses fiscal 2017 as the base year, remains on track.

Shares of Conagra were trading up 0.48% at $36.37 on the NYSE at 12:30 pm EDT. The stock has improved over 8% for the past year, while it had fallen over 3% year-to-date.

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