NYSE$CAG

ConAgra Foods Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported second quarter results with increased net sales and EPS.

Conagra Brands reported an 8.3% increase in net sales, driven by an 8.6% increase in organic net sales. The company's diluted EPS increased by 38.6% to $0.79, and adjusted EPS increased by 26.6% to $0.81. Conagra is raising its fiscal 2023 guidance to reflect organic net sales growth of 7% to 8% and adjusted EPS between $2.60 and $2.70.

  • Net sales increased by 8.3%, with organic net sales up by 8.6%.
  • Operating margin increased by 320 basis points to 16.6%, while adjusted operating margin increased by 237 basis points to 17.0%.
  • Diluted EPS increased by 38.6% to $0.79, and adjusted EPS increased by 26.6% to $0.81.
  • Fiscal year 2023 guidance raised for organic net sales growth (7-8%), adjusted operating margin (15.3-15.6%), and adjusted EPS ($2.60-$2.70).

Headline financials

Total Revenue

$3.31B

Previous: $3.06B+8.3%
EPS (adj)

$0.81

Previous: $0.64+26.6%
Organic Sales Growth

8.6%

Previous: 2.6%+230.8%
Capital Expenditures

-$188M

Previous: -$258M+26.8%
Free Cash Flow

$194M

Previous: $18M+975.0%
Net Income

$382M

Previous: $276M+38.6%
Operating Income

$656M

Previous: $468M+40.1%
Gross Profit

$922M

Previous: $755M+22.2%
Cash & Equivalents

$39.7M

Previous: $68.7M-42.2%
Total Assets

$22.4B

Previous: $22.6B-0.8%
Stock-Based Comp

$36M

Previous: $11.7M+207.7%

Revenue & EPS history

ConAgra · Revenue · Quarterly

$3.31B

Q2 2023+8.3%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

ConAgra · $542M total across 2 segments · Q2 2023

  • Foodservice
    $283M+14.9%
  • International
    $259M-1.2%

Forward guidance

The company is raising its full year outlook for fiscal 2023. The company continues to plan for supply chain inefficiencies tied to the dynamic operating environment and also expects both gross inflation and results from its Ardent Mills joint venture to moderate through the remainder of the fiscal year.

Tailwinds

  • Organic net sales growth is expected to be 7% to 8% compared to fiscal 2022
  • Adjusted operating margin is expected to be between 15.3% and 15.6%
  • Adjusted EPS is expected to be between $2.60 and $2.70, representing growth of 10% to 14% compared to fiscal 2022
  • Capital expenditures of approximately $425M
  • Pension income of approximately $25M

Headwinds

  • Supply chain inefficiencies tied to the dynamic operating environment
  • Gross inflation (input cost inflation before the impacts of hedging and other sourcing benefits) to moderate through the remainder of the fiscal year.
  • Results from its Ardent Mills joint venture to moderate through the remainder of the fiscal year.
  • Interest expense of approximately $405M
  • Adjusted effective tax rate of approximately 24%

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 2023

Historical avgQ2 2023

+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%

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