Conagra Brands, Inc. ($CAG) Earnings (Q3 FY22)

 Conagra Brands, Inc. ($CAG) Earnings and Opinion:


Conagra Brands, Inc. is a company in the Consumer Defensive sector and operates in the Packaged Foods industry. The company provides consumers packaged foods in North America. Conagra Brands was incorporated in 1919 and is currently headquartered in Chicago, Illinois. The company was first traded on the stock market in 1973.

Conagra Brands, Inc. EPS and Revenue (Q3 FY22):

  • EPS of $0.58 beating expectations of $0.57
  • Revenue of $2.9B beating expectations of $2.84B
  • EPS was up 11.1% (YOY) and Revenue was up 6.8% (YOY)
Conagra Brands Q3 Highlights:
  • Operating margin decreased by 387 points
  • Adjusted Operating margin decreased by 230 basis points
Conagra Updated Financial outlook for rest of FY22:
  • Organic Net Sales is expected to increase by 4%
  • Adjusted operating margin to be 14.5%
  • Adjusted EPS is expected to approximately $2.35
Opinion:
Conagra Brands, Inc. is currently trading even today after reporting earnings before the opening of the market this morning. The company beat expectations by a minimal amount and updated their outlook for the rest of the current fiscal year. Conagra Brands saw large decreases in both operating margin and adjusted operating margin. Also, the outlook caused investors to shun the company earlier today due to them decreasing some expectations for the rest of the fiscal year. I don't know if this is them lowering expectations due to them trying to make expectations easier to beat or if they see issues with supply-chain and inflation. I know in part of their outlook, they announced that the inflation would cost them 2% more than what they were expecting. This leads me to believe that the company is facing both supply-chain woes as well as inflationary concerns. All we can do as investors is keep a close eye out for it, we will see how Conagra will adjust for this. If they make a strong change, then it will help the company out and cause the stock price to rise. Personally, I do not have a position in this company. I will most likely not be taking a position in this company anytime soon either. I want to see some changes made financially to try and gain better results. Once this happens, then I may come back and consider holding a position. I just think there’s better options in both the sector and industry that are more safe and will generate you more returns.


*Information from Yahoo Finance, Conagra Brands, and Nasdaq
*Estimates attained from Zacks

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