NYSE$CAG

ConAgra Foods Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Conagra's third quarter results for fiscal year 2021 were reported, showcasing an increase in net sales and EPS.

Conagra Brands reported strong third-quarter results, with net sales increasing by 8.5% and organic net sales increasing by 9.7%. Diluted EPS grew by 38.1% to $0.58, while adjusted EPS grew by 25.5% to $0.59.

  • Net sales increased by 8.5%, driven by a 9.7% increase in organic net sales.
  • Operating margin increased to 16.2%, while adjusted operating margin was 16.0%.
  • Diluted EPS grew by 38.1% to $0.58, and adjusted EPS grew by 25.5% to $0.59.
  • The company repurchased approximately 8.8 million shares of its common stock for $298 million during the quarter.

Headline financials

Total Revenue

$2.77B

Previous: $2.56B+8.5%
EPS (adj)

$0.59

Previous: $0.47+25.5%
Organic Sales Growth

9.7%

No prior period
Adj. Operating Margin

16.0%

No prior period
Capital Expenditures

-$397M

Previous: -$265M-49.5%
Free Cash Flow

-$115M

Previous: -$60.9M-89.3%
Net Income

$281M

Previous: $204M+37.7%
Operating Income

$545M

Previous: $440M+24.1%
Gross Profit

$758M

Previous: $684M+10.8%
Cash & Equivalents

$80.7M

Previous: $99M-18.5%
Total Assets

$22.1B

Previous: $22.2B-0.4%
Stock-Based Comp

$10.2M

Previous: $8M+27.5%

Revenue & EPS history

ConAgra · Revenue · Quarterly

$2.77B

Q3 2021+8.5%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

ConAgra · $435M total across 2 segments · Q3 2021

  • International
    $241M+9.0%
  • Foodservice
    $194M-17.1%

Forward guidance

The Company is providing guidance for the fourth quarter of fiscal 2021, expecting organic net sales growth between (10)% and (12)%, adjusted operating margin between 14% and 15%, and adjusted EPS between $0.49 and $0.55.

Tailwinds

  • Sustained increase in demand in its retail segments when compared to pre-COVID-19 demand levels.
  • Continued elevate at-home eating.
  • Impact of customers beginning to rebuild inventories.
  • End-to-end supply chain operates effectively.
  • The Company is reaffirming its fiscal 2022 guidance.

Headwinds

  • Reduced demand in its Foodservice segment when compared to pre-COVID-19 demand levels.
  • Elevated inflation in cost of goods sold.
  • COVID-19-related costs have also continued to impact the business.
  • Organic net sales growth is expected in the range of (10)% to (12)%.
  • Adjusted EPS is expected in the range of $0.49 to $0.55.

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 Q3 2021

Historical avgQ3 2021

+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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