NYSE$CAG

ConAgra Foods Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong results driven by pricing actions and productivity improvements, offset by volume declines due to elasticity and supply chain disruptions.

Conagra Brands reported a 5.9% increase in net sales, driven by a 6.1% increase in organic net sales. The company's operating margin increased by 355 basis points to 15.9%, and diluted EPS increased by 57.8% to $0.71. The company is updating its fiscal 2023 guidance to reflect organic net sales growth of 7% to 7.5% and adjusted EPS between $2.70 and $2.75.

  • Net sales increased 5.9%; organic net sales increased 6.1%.
  • Operating margin increased 355 basis points to 15.9%; adjusted operating margin increased 321 basis points to 16.9%.
  • Diluted earnings per share (EPS) increased 57.8% to $0.71, and adjusted EPS increased 31.0% to $0.76.
  • Fiscal 2023 guidance updated: organic net sales growth of 7% to 7.5%, adjusted operating margin between 15.5% and 15.6%, and adjusted EPS between $2.70 and $2.75.

Headline financials

Total Revenue

$3.09B

Previous: $2.91B+5.9%
EPS (adj)

$0.76

Previous: $0.58+31.0%
Organic Sales Growth

6.1%

Previous: 6.0%+1.7%
Adjusted EBITDA

$669M

No prior period
Adjusted Gross Margin

28.1%

No prior period
Capital Expenditures

-$267M

Previous: -$364M+26.6%
Free Cash Flow

$74.3M

Previous: -$146M+151.0%
Net Income

$342M

Previous: $218M+56.5%
Operating Income

$581M

Previous: $424M+37.0%
Gross Profit

$839M

Previous: $697M+20.3%
Cash & Equivalents

$71.2M

Previous: $79.7M-10.7%
Total Assets

$22.5B

Previous: $22.5B-0.2%
Stock-Based Comp

$9.8M

Previous: $12.5M-21.6%

Revenue & EPS history

ConAgra · Revenue · Quarterly

$3.09B

Q3 2023+5.9%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

ConAgra · $535M total across 2 segments · Q3 2023

  • Foodservice
    $275M+17.1%
  • International
    $260M+7.8%

Forward guidance

The company is raising its full year fiscal 2023 adjusted EPS outlook and narrowing its guidance ranges on organic net sales growth and adjusted operating margin in response to year-to-date trends.

Tailwinds

  • Organic net sales growth is expected to be 7% to 7.5% compared to fiscal 2022.
  • Adjusted operating margin is expected to be between 15.5% and 15.6%.
  • Adjusted EPS is expected to be between $2.70 and $2.75, representing growth of 14% to 17% compared to fiscal 2022.
  • Capital expenditures of approximately $370M.
  • Pension income of approximately $25M.

Headwinds

  • Interest expense of approximately $410M.
  • Adjusted effective tax rate of approximately 24%.
  • Uncertainty regarding the impacts of foreign exchange, acquisitions, and divestitures.
  • Inability to predict the amount and timing of items impacting comparability.
  • Risks related to supply chain resources, including raw materials, packaging, and transportation.

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 2023

Historical avgQ3 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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