Conagra Brands (NYSE:CAG) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Conagra Brands (NYSE:CAG) released its earnings results on Wednesday. The company reported $0.39 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.01), FiscalAI reports. Conagra Brands had a positive return on equity of 10.59% and a negative net margin of 0.87%.The company had revenue of $2.79 billion during the quarter, compared to analysts’ expectations of $2.76 billion. During the same period last year, the firm posted $0.51 EPS. Conagra Brands’s quarterly revenue was down 1.9% compared to the same quarter last year.

Here are the key takeaways from Conagra Brands’ conference call:

• Conagra returned to organic net sales growth of 2.4% in Q3, driven by strong frozen volume recovery and snacks growth that outpaced its category, with frozen regaining meaningful market share after last year’s supply constraints.
• Free cash flow conversion was raised to approximately 105%, supporting plans to reduce net debt by about $800 million, continue investments, and maintain the dividend—underscoring disciplined capital allocation and deleveraging.
• Profitability and earnings fell versus last year: adjusted operating margin declined ~213 basis points to 10.6% and adjusted EPS was $0.39 (down $0.12); FY adjusted EPS guidance was narrowed to the low end (~$1.70), partly due to a $0.10 headwind from the Ardent Mills JV.
• Pricing and mix contributed +1.9% while volumes were up 0.5% in Q3, with management noting inflation-justified pricing across staples and select snack brands where elasticities have been better than historical norms—indicating pricing power but mixed volume dynamics.

Conagra Brands Trading Down 0.7%

Shares of NYSE:CAG traded down $0.10 during trading on Wednesday, hitting $15.62. The company had a trading volume of 14,029,038 shares, compared to its average volume of 14,273,063. The stock has a market cap of $7.47 billion, a price-to-earnings ratio of -70.96 and a beta of -0.02. The company has a debt-to-equity ratio of 0.80, a current ratio of 0.89 and a quick ratio of 0.28. The company has a fifty day simple moving average of $17.88 and a two-hundred day simple moving average of $17.77. Conagra Brands has a one year low of $15.03 and a one year high of $27.68.

Conagra Brands Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Thursday, April 30th will be paid a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 9.0%. The ex-dividend date of this dividend is Thursday, April 30th. Conagra Brands’s dividend payout ratio (DPR) is presently -636.36%.

Analysts Set New Price Targets

Several analysts have commented on the stock. Stifel Nicolaus decreased their price target on shares of Conagra Brands from $21.00 to $19.00 and set a “hold” rating on the stock in a research note on Thursday, December 11th. Sanford C. Bernstein reduced their target price on Conagra Brands from $21.00 to $18.00 and set a “market perform” rating on the stock in a report on Monday, December 22nd. Wells Fargo & Company reiterated an “underweight” rating and issued a $15.00 target price (down from $20.00) on shares of Conagra Brands in a research report on Thursday, March 12th. Royal Bank Of Canada cut their price target on Conagra Brands from $22.00 to $20.00 and set a “sector perform” rating for the company in a report on Monday, December 22nd. Finally, Bank of America reduced their price objective on Conagra Brands from $18.00 to $17.00 and set an “underperform” rating on the stock in a research note on Monday, December 22nd. One investment analyst has rated the stock with a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $17.79.

Key Conagra Brands News

Here are the key news stories impacting Conagra Brands this week:

• Positive Sentiment: Dividend support — The board declared a quarterly dividend of $0.35/share (annualized yield ~8.9%), which may attract income-focused investors and provide a floor under the share price. Dividend Announcement
• Positive Sentiment: Organic sales and category strength — Conagra reported organic sales growth with stronger frozen and snacks volumes, showing demand resilience in key categories despite cost pressures. Zacks: Organic Sales Growth
• Neutral Sentiment: Revenue slightly above estimates — Q3 revenue of $2.79B topped consensus ($2.76B), but revenue was down ~1.9% year‑over‑year, a mixed read for topline momentum. MarketBeat: Revenue/Call
• Negative Sentiment: EPS miss and shrinking margins — Q3 EPS was $0.39 vs. the $0.40 consensus and $0.51 a year ago; management cited margin pressure from rising costs, which is a direct hit to profitability expectations. Zacks: EPS Miss
• Negative Sentiment: Narrowed/trimmed guidance — Management narrowed the annual outlook citing rising costs and a dynamic operating environment, increasing near‑term uncertainty for earnings. Reuters: Guidance Trim
• Negative Sentiment: Analyst price‑target cuts — Jefferies lowered its PT to $15 (hold) and Deutsche Bank cut its target to $14, signaling reduced Street confidence and putting additional pressure on the stock. MarketScreener: Jefferies PT Cut Benzinga: Deutsche PT Cut
• Negative Sentiment: Market commentary on dividend sustainability — Some commentators (e.g., Jim Cramer) suggest the current high dividend may be historically hard to sustain if margins remain pressured, which could weigh on longer‑term sentiment. Yahoo: Dividend Sustainability

Institutional Trading of Conagra Brands

Institutional investors have recently bought and sold shares of the stock. Two Sigma Investments LP boosted its stake in Conagra Brands by 239.6% during the third quarter. Two Sigma Investments LP now owns 8,347,163 shares of the company’s stock worth $152,837,000 after buying an additional 5,889,542 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in shares of Conagra Brands by 245.5% in the third quarter. Arrowstreet Capital Limited Partnership now owns 7,734,061 shares of the company’s stock valued at $141,611,000 after acquiring an additional 5,495,503 shares during the period. AQR Capital Management LLC raised its stake in shares of Conagra Brands by 216.2% in the third quarter. AQR Capital Management LLC now owns 7,459,654 shares of the company’s stock valued at $135,318,000 after acquiring an additional 5,100,424 shares during the period. Qube Research & Technologies Ltd lifted its holdings in shares of Conagra Brands by 241.9% in the 3rd quarter. Qube Research & Technologies Ltd now owns 5,915,490 shares of the company’s stock worth $108,313,000 after acquiring an additional 4,185,486 shares during the last quarter. Finally, Ameriprise Financial Inc. lifted its holdings in shares of Conagra Brands by 69.5% in the 2nd quarter. Ameriprise Financial Inc. now owns 10,145,798 shares of the company’s stock worth $207,685,000 after acquiring an additional 4,160,542 shares during the last quarter. 83.75% of the stock is currently owned by institutional investors.

About Conagra Brands

Conagra Brands, Inc is a leading packaged foods company based in Chicago, Illinois, with a broad portfolio of shelf-stable, frozen and refrigerated foods marketed under familiar brands. The company develops, produces and distributes a wide range of consumer food products, serving both retail grocery and foodservice channels. Conagra’s product lineup includes frozen entrees, snacks, condiments, baking goods and desserts, providing convenient meal solutions for consumers across North America and select international markets.

Among its well-known brands are Birds Eye, Healthy Choice, Lean Cuisine, Marie Callender’s and Banquet in the frozen foods category, as well as Hunt’s sauces, Orville Redenbacher’s popcorn, Slim Jim meat snacks and Reddi-wip toppings.