NYSE$CAG

ConAgra Foods Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Conagra's Q4 results were impacted by non-cash goodwill and brand impairment charges, while investments in brands drove volume improvement in Domestic Retail business, particularly in Frozen and Snacks domains.

Conagra Brands reported a decrease in net sales by 2.3% to $2.9 billion, with a reported diluted loss per share of $1.18 due to significant non-cash impairment charges. Adjusted EPS was $0.61. The company's investments in key Frozen and Snacks domains drove volume improvements and market share gains. Supply chain productivity initiatives expanded adjusted gross margins, and the company continued to strengthen its balance sheet and reduce net leverage.

  • Net sales decreased by 2.3%, while organic net sales decreased by 2.4%.
  • Reported operating margin was (19.1)%, while adjusted operating margin stood at 14.8%.
  • Reported diluted loss per share was $1.18, primarily due to non-cash goodwill and brand impairment charges; adjusted EPS was $0.61.
  • Investments in brands drove volume improvement in the Domestic Retail business, especially in Frozen and Snacks.

Headline financials

Total Revenue

$2.91B

Previous: $2.97B-2.3%
EPS (adj)

$0.61

Previous: $0.62-1.6%
Adjusted EBITDA

$577M

No prior period
Capital Expenditures

-$78.5M

Previous: $94.8M-182.8%
Net Income

-$567M

Previous: $37M-1633.0%
Operating Income

-$556M

Previous: $57M-1075.6%
Gross Profit

$805M

Previous: $783M+2.8%
Stock-Based Comp

$12.1M

Previous: $10.4M+16.3%

Revenue & EPS history

ConAgra · Revenue · Quarterly

$2.91B

Q4 2024-2.3%vs Q4 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 provided fiscal year 2025 guidance, anticipating organic net sales to range from -1.5% to flat compared to fiscal year 2024. Adjusted operating margin is projected to be between 15.6% and 15.8%, with adjusted EPS expected to be between $2.60 and $2.65. The company anticipates a free cash flow conversion rate of approximately 90%.

Tailwinds

  • Organic net sales of (1.5)% to flat compared to fiscal 2024
  • Adjusted operating margin between 15.6% and 15.8%
  • Adjusted EPS between $2.60 and $2.65
  • Free cash flow conversion of approximately 90%
  • Net Leverage Ratio of approximately 3.2x

Headwinds

  • Cost of goods sold inflation to continue into fiscal 2025
  • Net inflation (input cost inflation including the impacts of hedging and other sourcing benefits) to be roughly 3%
  • Capital expenditures of approximately $500M
  • Interest expense of approximately $415M
  • Adjusted effective tax rate of approximately 23.5%

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 2024

Historical avgQ4 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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