NYSE$CAG

ConAgra Foods Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Conagra Brands' financial performance decreased slightly in Q3 2024 due to strategic investments and lower consumption trends, but was partially offset by strong execution and cost savings initiatives.

Conagra Brands reported a decrease in net sales by 1.7% and a decrease in organic net sales by 2.0%. EPS decreased by 9.9% to $0.64, while adjusted EPS decreased by 9.2% to $0.69. The company is increasing its fiscal 2024 adjusted operating margin guidance and reaffirming organic net sales and adjusted EPS guidance.

  • Net sales decreased by 1.7%, with organic net sales down by 2.0%.
  • Diluted EPS decreased by 9.9% to $0.64, and adjusted EPS decreased by 9.2% to $0.69.
  • Gross profit increased by 2.4% to $859 million, with gross margin increasing by 114 basis points to 28.3%.
  • The company is increasing fiscal 2024 adjusted operating margin guidance and reaffirming organic net sales and adjusted EPS guidance.

Headline financials

Total Revenue

$3.03B

Previous: $3.09B-1.7%
EPS

$0.64

Previous: $0.76-15.8%
Adjusted EBITDA

$634M

Previous: $669M-5.3%
Capital Expenditures

-$310M

Previous: -$267M-15.8%
Free Cash Flow

-$1M

Previous: $74.3M-101.3%
Net Income

$309M

Previous: $342M-9.7%
Operating Income

$578M

Previous: $581M-0.4%
Gross Profit

$859M

Previous: $839M+2.4%
Cash & Equivalents

$78.5M

Previous: $71.2M+10.3%
Total Assets

$21.9B

Previous: $22.5B-2.4%
Stock-Based Comp

$15.2M

Previous: $9.8M+55.1%

Revenue & EPS history

ConAgra · Revenue · Quarterly

$3.03B

Q3 2024-1.7%vs Q3 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

Conagra Brands is increasing fiscal 2024 Adjusted Operating Margin guidance to approximately 15.8% and updating fiscal 2024 guidance for Net Leverage Ratio of approximately 3.44x, Capital expenditures of approximately $425M, and Interest expense of approximately $435M. The company is reaffirming fiscal 2024 guidance for Organic net sales to decrease between 1.0% and 2.0% compared to fiscal 2023, Adjusted EPS is expected to be between $2.60 and $2.65, Adjusted effective tax rate of approximately 24%, No pension income, and Ardent Mills contribution of approximately $170M.

Tailwinds

  • Increasing fiscal 2024 Adjusted Operating Margin guidance to approximately 15.8%.
  • Reaffirming fiscal 2024 guidance for Organic net sales to decrease between 1.0% and 2.0% compared to fiscal 2023.
  • Reaffirming Adjusted EPS is expected to be between $2.60 and $2.65.
  • Reaffirming Adjusted effective tax rate of approximately 24%.
  • Reaffirming Ardent Mills contribution of approximately $170M.

Headwinds

  • Net Leverage Ratio of approximately 3.44x
  • Capital expenditures of approximately $425M
  • Interest expense of approximately $435M
  • Organic net sales to decrease between 1.0% and 2.0% compared to fiscal 2023.
  • No pension income

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 2024

Historical avgQ3 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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