Shares of Conagra Brands, Inc. (NYSE: CAG) stayed green on Wednesday. The stock has dropped 11% over the past three months. The branded food company is scheduled to report its earnings results for the second quarter of 2025 on Thursday, December 19, before market open. Here’s a look at what to expect from the Q2 earnings report:
Revenue
Analysts are projecting revenue of $3.15 billion for Conagra in Q2 2025. This compares to revenue of $3.20 billion reported in the same period a year ago. In the first quarter of 2025, net sales decreased 3.8% year-over-year to $2.8 billion.
Earnings
The consensus estimate for earnings per share in Q2 2025 is $0.68. This compares to adjusted EPS of $0.71 reported in the prior-year quarter. In Q1 2025, adjusted EPS decreased nearly 20% YoY to $0.53.
Points to note
Conagra anticipates the consumer environment to remain challenging in fiscal year 2025 but it believes it will be able to navigate it through a strong strategy and a resilient portfolio. The company anticipates sequential volume recovery each quarter through the year and it expects volumes to improve in the second quarter compared to the first quarter.
In Q1, Conagra saw meaningful volume improvement in its domestic retail business, with year-over-year growth in the frozen and snack domains. The company saw strong performance in single-serve meals and share gains in frozen vegetables and multi-serve meals. CAG holds a lion’s share of volume in the single-serve meals category and its investments have helped drive steady share improvement in this area. The frozen vegetables business also remains stable and positive. All these trends bode well for the second quarter.
In snacks, the company is outpacing the total snacking category helped by its portfolio that offers several on-trend options such as meat snacks, popcorn, and seeds for health-conscious consumers. It is benefiting from gains in its Slim Jim, Duke’s and BOOMCHICKAPOP brands. This momentum is likely to have continued in Q2.
Conagra is facing headwinds in its Foodservice business due to impacts from the exit of low-margin business and from softness in restaurant traffic. The company is working on driving margin improvement in this business.
Conagra continues to reshape its portfolio through acquisitions and divestitures. Last quarter, it acquired FATTY Smoked Meat Sticks and divested its majority stake in Agro Tech Foods Limited in India. Portfolio reshaping remains a key part of the company’s growth strategy.