NYSE$CAG

ConAgra Foods Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a decrease in net sales and EPS due to a challenging macro environment, while showing positive signs in volume trends and market share gains in the frozen business.

Conagra Brands reported a decrease in net sales by 3.2% and a decrease in diluted EPS by 24.1% to $0.60 for the second quarter of fiscal year 2024. Despite these declines, the company saw improved volume trends in its domestic retail business and strong market share gains in its frozen business.

  • Net sales decreased by 3.2%, with organic net sales down by 3.4%.
  • Operating margin decreased to 14.0%, with adjusted operating margin at 15.9%.
  • Diluted EPS decreased by 24.1% to $0.60, while adjusted EPS decreased by 12.3% to $0.71.
  • The company is updating its fiscal 2024 guidance, expecting organic net sales to decrease between 1.0% and 2.0% and adjusted EPS between $2.60 and $2.65.

Headline financials

Total Revenue

$3.21B

Previous: $3.31B-3.2%
EPS

$0.60

Previous: $0.81-25.9%
Capital Expenditures

-$214M

Previous: -$188M-13.6%
Free Cash Flow

$72.2M

Previous: $194M-62.7%
Net Income

$286M

Previous: $382M-25.1%
Operating Income

$543M

Previous: $656M-17.2%
Gross Profit

$847M

Previous: $922M-8.2%
Cash & Equivalents

$61.5M

Previous: $39.7M+54.9%
Total Assets

$22.1B

Previous: $22.4B-1.3%
Stock-Based Comp

$6.2M

Previous: $36M-82.8%

Revenue & EPS history

ConAgra · Revenue · Quarterly

$3.21B

Q2 2024-3.2%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

ConAgra · $549M total across 2 segments · Q1 2024

  • Foodservice
    $289M+5.1%
  • International
    $260M+11.1%

Forward guidance

The company is lowering its fiscal 2024 organic net sales growth, operating margin, and adjusted EPS outlook to reflect year-to-date results, expectations for a slower volume recovery, and increased brand investments in the second half of the fiscal year.

Tailwinds

  • Organic net sales to decrease between 1.0% and 2.0% compared to fiscal 2023
  • Adjusted operating margin is expected to be approximately 15.6%
  • Adjusted EPS is expected to be between $2.60 and $2.65
  • Capital expenditures of approximately $450M
  • Interest expense of approximately $440M

Headwinds

  • The company is lowering its fiscal 2024 organic net sales growth outlook
  • The company is lowering its fiscal 2024 operating margin outlook
  • The company is lowering its fiscal 2024 adjusted EPS outlook
  • Expectations for a slower volume recovery
  • Increased brand investments in the second half of the fiscal year

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 2024

Historical avgQ2 2024

+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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