Conagra Manufacturers (NYSE: CAG), a market chief in consumer-packaged items, is predicted to report third-quarter outcomes on Thursday, April 3, at 7:30 am ET. Amid financial uncertainties and a difficult client setting, the corporate continues to spend money on infrastructure and strategic partnerships, positioning itself to capitalize on enhancing demand circumstances.
Estimates
When the Chicago-based agency stories Q3 earnings subsequent week, the market will probably be anticipating adjusted earnings of $0.53 per share on revenues of $2.9 billion. Within the comparable quarter of fiscal 2024, it reported earnings and gross sales of $0.69 per share and $3.03 billion, respectively. In the meantime, the administration just lately warned that monetary efficiency within the second half of 2025 will probably be impacted by provide constraints on two product platforms and unfavorable international trade charges.
Conagra Manufacturers’ inventory had a weak begin to 2025 and has misplaced 8% for the reason that starting of the yr. After slipping to a five-year low just lately, the shares have been buying and selling sideways. The typical inventory worth for the final 52 weeks is $28.83, which is 12% greater than the final closing worth.
Flat Gross sales
Within the second quarter, gross sales remained broadly unchanged year-over-year at $3.20 billion, whereas adjusted earnings edged down by 1% to $0.70 per share. A modest improve in grocery and snack gross sales was offset by weak point in different enterprise segments. Natural internet gross sales rose 0.3% throughout the quarter. Internet earnings, on an unadjusted foundation, was $284.5 million or $0.59 per share within the second quarter, in comparison with $286.2 million or $0.60 per share in Q2 2024. In the meantime, each gross sales and revenue beat estimates, after lacking within the prior quarter.
From Conagra Manufacturers’ Q2 2025 earnings name:
“Whereas we’re proud of our top-line efficiency by Q2, we do count on two elements to strain the second half of the yr: inflation and FX. On inflation, final quarter we advised you we anticipated it to peak in Q2 after which fall within the second half, pushed partly by decrease prices on proteins. Our newest forecast tasks that reduction on protein prices will probably be delayed till after the top of the fiscal yr. However to be clear, we do nonetheless count on these prices to fall as animal provide strengthens. We additionally count on some deflation on crop-based inputs as fiscal 26 unfolds. Given this up to date outlook, we’re not locking in commodity costs on the peak.”
Outlook
The Conagra Manufacturers management just lately revised its fiscal 2025 monetary steerage, forecasting a 2% year-over-year lower in natural gross sales, in comparison with the earlier outlook of down 1.5% to flat. The corporate lowered its full-year adjusted EPS steerage to $2.35 from $2.45-$2.50 estimated earlier. The revised steerage for FY25 adjusted working margin is roughly 14.4%, which marks a discount from the sooner forecast of round 48%. Whereas reaffirming its long-term monetary targets, the corporate mentioned the revised FY25 steerage doesn’t embody potential impacts from new tariffs.
Conagra Manufacturers’ inventory is sustaining a downtrend forward of subsequent week’s earnings. On Tuesday, the shares traded decrease all through the session.
