Conagra Misses Q3 EPS by $0.01, Narrows Full-Year Guidance to $1.70
Conagra Brands reported Q3 adjusted EPS of $0.39 versus a $0.40 estimate and revenue of $2.79 billion beating forecasts. The company narrowed full-year adjusted EPS guidance to $1.70 at the low end of its $1.70–$1.85 range and saw organic net sales rise 2.4%, driven by price/mix and volume gains in Frozen and Foodservice.
1. Q3 Earnings and Revenue
Conagra posted adjusted earnings per share of $0.39, missing the consensus by $0.01, while revenue reached $2.79 billion against a $2.76 billion forecast, leading to a more than 2% intraday share decline. The slight EPS shortfall contrasted with the revenue beat, signaling mixed investor sentiment.
2. Full-Year Guidance Revision
The company narrowed its full-year adjusted EPS guidance to $1.70, which is at the lower bound of its prior $1.70–$1.85 outlook. This revision reflects a cautious stance on profitability for the remainder of the year.
3. Segment Performance and Margin
Organic net sales grew 2.4% year-over-year, driven by a 1.9% price/mix increase and a 0.5% volume gain. Refrigerated & Frozen led with 3.6% organic growth and Foodservice also rose 3.6%, while adjusted operating margin reached 10.6%.
4. Dividend Outlook and Share Reaction
Despite the EPS miss and guidance cut, Conagra affirmed that its high dividend remains well covered by operating cash flow. However, the cautious outlook prompted investor selling, pushing the stock lower in the session.