Conagra Guides FY27 EPS Below Consensus, Slashes Dividend 50% After $2B Impairment
CAG is trading near its 52-week low of $12.53 (8.5% above the low).
Summary
Conagra Brands reported Q4 adjusted EPS of $0.47 and issued FY27 guidance below expectations, while slashing its dividend by 50% and taking a $2 billion impairment charge.
Key Events · Earnings and Guidance · CAG
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FY27 Guidance Misses Consensus
Adjusted EPS guidance of $1.40-$1.50 is below the $1.57 consensus, with organic net sales expected to decline 1%-3% and adjusted operating margin of 10.0%-10.5%.
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Dividend Cut by 50%
Quarterly dividend reduced to $0.175 per share, annualized to $0.70 from $1.40, freeing up approximately $335 million in annual cash.
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$2 Billion Non-Cash Impairment
Goodwill and brand impairment charges of $2.0 billion in Q4, primarily triggered by a sustained decline in share price and market capitalization.
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Q4 Adjusted EPS Declines
Adjusted EPS of $0.47 vs. $0.56 prior year, with adjusted operating margin contracting 215 bps to 11.7% on flat organic sales.
Analysis · CAG · Manufacturing
Conagra's fiscal 2027 adjusted EPS guidance of $1.40-$1.50 misses the $1.57 consensus, signaling continued margin pressure. The dividend cut to $0.70 annually frees up roughly $335 million in cash but removes a key income support for shareholders. A $2 billion non-cash goodwill and brand impairment charge reflects a sustained decline in market value, and the new CEO's focus on stabilizing margins and reducing complexity underscores the turnaround challenge ahead.
At the time of this filing, CAG was trading at $13.60 on NYSE in the Manufacturing sector, with a market capitalization of approximately $6.8B. The 52-week trading range was $12.53 to $20.32. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.