Conagra (CAG) Q2 Earnings Report Preview: What To Look For
Packaged foods company Conagra Brands (NYSE:CAG) will be announcing earnings results this Wednesday before market hours. Here’s what you need to know.
Conagra beat analysts’ revenue expectations last quarter, reporting revenues of $2.79 billion, down 1.9% year on year. It was a mixed quarter for the company, with full-year EPS guidance topping analysts’ expectations but a slight miss of analysts’ EBITDA estimates.
Is Conagra a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Conagra’s revenue to grow 4% year on year, a reversal from the 4.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Conagra has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Conagra’s peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. General Mills delivered year-on-year revenue growth of 1.2%, beating analysts’ expectations by 0.7%, and McCormick reported revenues up 16.7%, topping estimates by 1.2%.
Read our full analysis of General Mills’s results here and McCormick’s results here.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 3.6% on average over the last month. Conagra is up 4.5% during the same time and is heading into earnings with an average analyst price target of $14.32 (compared to the current share price of $14.28).
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