Frozen food maker Conagra Brands' Q1 adjusted EPS rises
CAG•Conagra Brands’ fiscal first-quarter adjusted EPS rose 5.1% year over year to $0.41, while net sales fell 1.4% to $2.60 billion. The company reaffirmed fiscal 2027 guidance, including adjusted EPS of $1.40 to $1.50.
1. Quarterly results
Conagra Brands reported fiscal first-quarter adjusted EPS of $0.41, up 5.1% year over year, and revenue of $2.60 billion. Net sales declined 1.4%. Organic net sales fell 1.1%, as a 2.1% volume decline was partly offset by a 1.0% positive impact from price and mix.
2. Fiscal 2027 outlook
The company reaffirmed its fiscal 2027 outlook for organic net sales to change between a 3% decline and a 1% decline versus fiscal 2026. It expects an adjusted operating margin of 10.0% to 10.5% and adjusted EPS of $1.40 to $1.50.
3. Factors affecting results
Conagra said higher productivity and tariff refunds were more than offset by cost-of-goods-sold inflation and unfavorable operating leverage. Earnings from equity-method investments increased 71.8%, which the company attributed to favorable market conditions and effective management through wheat market volatility.
