Shares of Conagra Brands (CAG) declined in pre-market trading after the company trimmed its FY25 forecast. The consumer-packaged-goods company expects its organic net sales near the midpoint of a decline of 1.5% or remain flat year-over-year in FY25. Furthermore, the company has forecasted its adjusted earnings to be between $2.45 and $2.50 per share, lower than its prior forecast in the range of $2.60 to $2.65 per share. For reference, analysts were expecting earnings of $2.58 per share.
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CAG Reports Better-than-Expected Fiscal Q2 Earnings
CAG’s Fiscal second-quarter adjusted earnings fell by 1.4% to $0.70 per share, above consensus estimates of $0.67 per share.
Furthermore, the company’s revenues fell by 0.4% year-over-year to $3.2 billion in the Fiscal second quarter. This was in line with Street estimates.
CAG’s Management Comments on the Results
Sean Connolly, President and CEO of Conagra Brands, commented that the company’s business “returned to growth in the second quarter despite a continued challenging consumer environment as our investments paid off, driving strong market share performance.”
Connolly added that he expects CAG’s business to be impacted in the second half of FY25 by “higher than expected inflation and unfavorable foreign exchange rates.”
Is CAG a Good Stock to Buy?
Analysts remain sidelined about CAG stock, with a Hold consensus rating based on two Buys, eight Holds, and one Sell. Over the past year, CAG has declined by more than 2%, and the average CAG price target of $31.10 implies an upside potential of 13.6% from current levels. These analyst ratings are likely to change following CAG’s results today.
