Conagra up on plans to review non-core assets, hike prices on frozen products
CAG•Dividend cut and stock performance
Conagra halved its dividend to 70 cents per share.
As of the last close, the stock was down about 18% year to date.
Shares rise on asset review and pricing plans
Slim Jim maker Conagra Brands' CAG.N shares rose as much as 2% to $14.44, reversing premarket losses.
CEO John Brase, who joined the company in June this year, said the portfolio has been too large and complex and added that Conagra will be reviewing its non-core assets.
The company also plans additional pricing actions, especially in frozen, even if it pressures volumes in the short term, according to prepared remarks.
Forecast below estimates on higher costs and weak spending
Conagra forecast annual profit below estimates on higher commodity costs and frugal consumer spending.
It expects FY27 adjusted EPS of $1.40-$1.50 versus estimates of $1.59, according to LSEG data.
The company expects FY27 organic net sales to drop 1%-3% versus a 0.4% decrease in FY26.
