NYSE$CAG

ConAgra Foods Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported fiscal year 2022 fourth quarter and full-year results and provided fiscal 2023 guidance.

Conagra Brands reported a 6.2% increase in net sales for the fourth quarter, driven by a 6.8% increase in organic net sales, which was offset by declines in volume. The company's adjusted EPS increased by 20.4% to $0.65, driven primarily by an increase in operating profit and a strong performance from the Company's Ardent Mills joint venture.

  • Net sales increased 6.2% and organic net sales increased 6.8%.
  • Operating margin decreased 310 basis points to 7.4%; adjusted operating margin increased 96 basis points to 15.0%.
  • Diluted earnings per share (EPS) declined 48.4% to $0.33 and adjusted EPS increased 20.4% to $0.65.
  • The Company is providing fiscal 2023 guidance to reflect organic net sales growth of 4% to 5% compared to fiscal 2022.

Headline financials

Total Revenue

$2.91B

Previous: $2.74B+6.2%
EPS (adj)

$0.65

Previous: $0.54+20.4%
Organic Sales Growth

6.8%

No prior period
Adjusted Gross Margin

24.9%

No prior period
Capital Expenditures

$100M

Previous: $110M-8.7%
Free Cash Flow

$713M

Previous: $962M-25.9%
Net Income

$159M

Previous: $310M-48.7%
Operating Income

$215M

Previous: $286M-24.9%
Gross Profit

$713M

Previous: $722M-1.2%
Cash & Equivalents

$180M

Previous: $79.2M+127.3%
Total Assets

$19.9B

Previous: $22.2B-10.2%
Stock-Based Comp

-$700K

Previous: $22.8M-103.1%

Revenue & EPS history

ConAgra · Revenue · Quarterly

$2.91B

Q4 2022+6.2%vs Q4 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

ConAgra · $518M total across 2 segments · Q4 2022

  • Foodservice
    $287M+23.3%
  • International
    $231M+0.9%

Forward guidance

The Company expects cost of goods sold inflation to continue into fiscal 2023 and has communicated additional pricing increases that will take effect in the second quarter of FY23. Guidance anticipates gross inflation (input cost inflation before the impacts of hedging and other sourcing benefits) in low-teen levels.

Tailwinds

  • Organic net sales growth of 4% to 5% compared to fiscal 2022
  • Adjusted operating margin of approximately 15%
  • Adjusted EPS growth of 1% to 5% compared to fiscal 2022
  • Additional pricing increases will take effect in the second quarter of FY23
  • Guidance anticipates gross inflation in low-teen levels

Headwinds

  • Cost of goods sold inflation to continue into fiscal 2023
  • Elasticities increase from fiscal 2022 levels but remain below historical levels
  • The Company does not expect the elevated performance that its joint venture, Ardent Mills, delivered in the back half of fiscal 2022 to continue throughout fiscal 2023.
  • The inability to predict the amount and timing of the impacts of foreign exchange, acquisitions, divestitures, and other items impacting comparability makes a detailed reconciliation of forward-looking non-GAAP financial measures impracticable.
  • Volume elasticities increase from fiscal 2022 levels but remain below historical levels.

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 2022

Historical avgQ4 2022

+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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