NYSE$CAG

ConAgra Foods Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported strong fourth quarter and full-year results.

Conagra Brands reported a decrease in net sales by 16.7% but an increase in EPS by 56.1% for the fourth quarter of fiscal year 2021. The company is revising its Fiscal 2022 guidance to reflect increased inflation.

  • Net sales decreased 16.7%, and organic net sales decreased 10.1% driven by lapping the prior year’s significant surge in at-home food consumption at the onset of the COVID-19 pandemic.
  • Operating margin decreased 143 basis points to 10.5%; adjusted operating margin decreased 311 basis points to 14.0%.
  • Diluted earnings per share from continuing operations (EPS) for the fourth quarter grew 56.1% to $0.64, and adjusted EPS declined 28.0% to $0.54.
  • The Board of Directors has authorized a 14% increase to the Company’s annualized dividend rate, beginning with the dividend payable on September 2, 2021, reflecting continued confidence in the strength of the business.

Headline financials

Total Revenue

$2.74B

Previous: $3.29B-16.7%
EPS (adj)

$0.54

Previous: $0.75-28.0%
Capital Expenditures

$110M

Previous: $104M+5.3%
Free Cash Flow

$962M

Previous: $1.47B-34.7%
Net Income

$310M

Previous: $201M+53.9%
Operating Income

$286M

Previous: $391M-26.7%
Gross Profit

$722M

Previous: $923M-21.8%
Cash & Equivalents

$79.2M

Previous: $553M-85.7%
Total Assets

$22.2B

Previous: $22.3B-0.5%
Stock-Based Comp

$22.8M

Previous: $30.2M-24.5%

Revenue & EPS history

ConAgra · Revenue · Quarterly

$2.74B

Q4 2021-16.7%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

ConAgra · $462M total across 2 segments · Q4 2021

  • Foodservice
    $233M+20.8%
  • International
    $229M-13.9%

Forward guidance

Management expects that consumer demand for its retail products will remain elevated versus historical levels during fiscal 2022, as consumers have developed new habits during the COVID-19 pandemic. The Company is providing the following updated fiscal 2022 guidance: Organic net sales growth is expected to be approximately flat compared to fiscal 2021. Adjusted operating margin is expected to be approximately 16%. Adjusted EPS is expected to be approximately $2.50.

Tailwinds

  • consumer demand for its retail products will remain elevated versus historical levels during fiscal 2022
  • Organic net sales growth is expected to be approximately flat compared to fiscal 2021
  • Adjusted operating margin is expected to be approximately 16%
  • Adjusted EPS is expected to be approximately $2.50
  • Adjusted EPS in the second half of the fiscal year is expected to be in-line with what was assumed for the second half of fiscal 2022 in the Company's prior fiscal 2022 guidance.

Headwinds

  • the Company has recently experienced elevated cost of goods sold inflation, the rate of which increased during the fourth quarter of fiscal 2021
  • the timing of the margin lever benefits is expected to be weighted towards the second half and therefore not expected to fully offset the input cost headwinds within fiscal 2022
  • This timing lag is expected to most acute in the first quarter
  • how consumers purchase food as foodservice establishments continue to reopen and people return to in-office work and in-person school
  • the cost of goods sold inflation the Company experiences

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 Q4 2021

Historical avgQ4 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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