NYSE$CAG

ConAgra Foods Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported second quarter results with increased organic net sales guidance and reaffirmed adjusted EPS guidance.

Conagra Brands reported a 2.1% increase in net sales to $3.1 billion, driven by a 2.6% increase in organic net sales. However, diluted EPS decreased by 26% to $0.57, and adjusted EPS decreased by 21% to $0.64. The company is reiterating its adjusted EPS guidance for fiscal 2022 and updating its organic net sales and adjusted operating margin guidance.

  • Net sales increased by 2.1%, with organic net sales up by 2.6%.
  • Diluted EPS decreased by 26.0% to $0.57, and adjusted EPS decreased 21.0% to $0.64.
  • Gross profit decreased 15.1% to $755 million, and adjusted gross profit decreased 14.4% to $767 million.
  • The company is reiterating its adjusted EPS guidance for fiscal 2022 and updating its organic net sales and adjusted operating margin guidance.

Headline financials

Total Revenue

$3.06B

Previous: $3B+2.1%
EPS (adj)

$0.64

Previous: $0.81-21.0%
Organic Sales Growth

2.6%

Previous: 8.1%-67.9%
Adj. Operating Margin

14.6%

Previous: 19.6%-25.5%
Capital Expenditures

-$258M

Previous: -$282M+8.7%
Free Cash Flow

$18M

Previous: $96.9M-81.4%
Net Income

$276M

Previous: $379M-27.3%
Operating Income

$468M

Previous: $643M-27.1%
Gross Profit

$755M

Previous: $889M-15.1%
Cash & Equivalents

$68.7M

Previous: $68M+1.0%
Total Assets

$22.6B

Previous: $22.3B+1.4%
Stock-Based Comp

$11.7M

Previous: $14.4M-18.8%

Revenue & EPS history

ConAgra · Revenue · Quarterly

$3.06B

Q2 2022+2.1%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

ConAgra · $509M total across 2 segments · Q2 2022

  • International
    $262M+5.0%
  • Foodservice
    $246M+16.1%

Forward guidance

The company is reiterating its adjusted EPS guidance for fiscal 2022 and updating its organic net sales and adjusted operating margin guidance. The outlook reflects expectations for continued top line strength, and higher cost of goods sold inflation, and the timing effect of additional pricing actions.

Tailwinds

  • Organic net sales growth is expected to be approximately +3% versus prior guidance of approximately +1%
  • Gross inflation (input cost inflation before the impacts of hedging and other sourcing benefits) is expected to be approximately 14% versus prior guidance of approximately 11%
  • Adjusted operating margin is expected to be approximately 15.5% versus prior guidance of approximately 16%
  • Adjusted EPS is expected to be approximately $2.50, representing no change to prior guidance.
  • Margins are expected to improve in the second half of the fiscal year.

Headwinds

  • Consumer demand for retail products would remain elevated versus historical levels throughout fiscal 2022, as consumers have developed new habits during the COVID-19 pandemic.
  • The company also continues to experience elevated cost of goods sold inflation, the rate of which was higher than expected during the second quarter of fiscal 2022.
  • The company has taken, and plans to continue taking, a variety of actions to counteract the impact of this inflation, including incremental pricing actions and cost savings measures.
  • The company continues to expect that the timing of the associated benefits from these margin lever actions will increase as the fiscal year progresses.
  • The company's ultimate fiscal 2022 performance will be highly dependent on factors including, without limitation:

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.4%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.0%

Avg return

30 days after

50%

36 / 72 earnings

Positive

+20.7%

Q2 2020

Best reaction

-23.9%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.1%-6.2%
Q2 2026-2.6%-4.0%-4.7%
Q1 2026+5.5%+2.2%-6.1%
Q4 2025-1.3%-6.2%-6.8%
Q3 2025+1.5%-5.3%-9.6%
Q2 2025-0.9%+1.0%-5.7%
Q1 2025-10.3%-11.1%-11.5%
Q4 2024-1.6%+0.6%+4.7%
Q3 2024+7.0%+7.6%+5.3%
Q2 2024-3.7%+0.1%+0.6%
Q1 2024-0.5%+3.8%+4.8%
Q4 2023-0.2%-2.4%-5.2%
Q3 2023+2.1%-0.0%+0.6%
Q2 2023+6.0%+4.6%-5.7%
Q1 2023-2.8%+0.3%+6.4%
Q4 2022-5.6%-6.4%-3.8%
Q3 2022+0.5%+2.2%+3.6%
Q2 2022+1.8%-0.5%+1.7%
Q1 2022-2.2%-3.1%-5.5%
Q4 2021-5.7%-3.0%-6.5%
Q3 2021-2.8%-0.1%+1.9%
Q2 2021-4.6%-7.9%-3.1%
Q1 2021+3.3%+3.2%-1.7%
Q4 2020+5.8%+5.1%+10.9%
Q3 2020+5.4%+10.6%+18.5%
Q2 2020+20.7%+17.2%+14.7%
Q1 2020+1.3%-1.4%-10.0%
Q4 2019-8.3%-7.8%+0.8%
Q3 2019+15.5%+18.4%+33.3%
Q2 2019-23.9%-27.9%-25.9%
Q1 2019-5.8%-7.3%-1.8%
Q4 2018-6.3%-8.4%-2.5%
Q3 2018+0.5%+2.7%+3.1%
Q2 2018-0.2%+0.2%-1.0%
Q1 2018+1.2%+0.2%+1.0%
Q4 2017-4.3%-5.0%-8.4%
Q3 2017-0.0%-0.7%+0.4%
Q2 2017+4.7%+4.9%+3.0%
Q1 2017+9.2%+10.1%+11.5%
Q4 2016+1.7%+0.3%-1.8%
Q3 2016+1.6%
Q2 2016+3.5%
Q1 2016-6.8%
Q4 2015+2.7%
Q3 2015+5.2%
Q2 2015-0.6%
Q1 2015+5.0%
Q4 2014+3.1%
Q3 2014+1.6%
Q2 2014+5.5%
Q1 2014-3.3%
Q4 2013+4.7%
Q3 2013-2.5%
Q2 2013-0.6%
Q1 2013+7.3%
Q4 2012+3.0%
Q3 2012+1.1%
Q2 2012-1.2%
Q1 2012-1.4%
Q4 2008+0.6%
Q4 2011+0.6%
Q3 2011-0.1%
Q2 2011+0.3%
Q1 2011+0.3%
Q4 2010+1.1%
Q3 2010-0.1%
Q3 2009-0.1%
Q2 2010+0.1%
Q1 2010-0.5%
Q4 2009-0.5%
Q1 2009-0.5%
Q2 2009-0.5%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro