The parent company of iconic brands like Birds Eye and Duncan Hines, Conagra Brands (NYSE: CAG) slipped in pre-market trading at the time of writing on Thursday after the consumer packaged goods company reported fiscal Q4 adjusted earnings of $0.62, a fall of 4.6% year-over-year but still above consensus estimates of $0.59 per share.
The company’s Q4 revenues went up by 2.2% year-over-year to $3 billion, in line with analysts’ forecasts. Conagra’s Board approved a hike in the annual dividend from $1.32 per share to $1.40 per share. Conagra will pay a quarterly dividend payment of $0.35 per share on August 31 to stockholders of record as of the close of business on July 31.
Looking forward, the management expects its net sales to grow organically by 1% year-over in FY24. Adjusted earnings are projected to be between $2.70 and $2.75 per share in FY24 but below analysts’ forecasts of $2.84 per share. The company stated in its press release that it expects “cost of goods sold inflation to continue into fiscal 2024.”
Analysts are cautiously optimistic about CAG stock with a Moderate Buy consensus rating based on two Buys and five Holds.
