Conagra Beats Q4 Estimates but Slashes Dividend, Guides FY27 Below Consensus
CAG is trading near its 52-week low of $12.53 (9.7% above the low).
Summary
Conagra's Q4 revenue of $2.90B and adjusted EPS of $0.47 both edged past consensus, but the company cut its annual dividend to $0.70 per share and issued FY27 adjusted EPS guidance of $1.40-$1.50, well below the $1.57 consensus. Organic net sales are expected to decline 1-3% next year, with adjusted operating margins of 10.0-10.5%. The quarter's GAAP net loss of $1.60B reflects heavy impairment charges, while adjusted gross margin slipped to 24.5% as cost inflation and unfavorable operating leverage offset productivity gains. Volume fell 1.6%, erasing the benefit of higher pricing. This follows the earlier guidance headline and the recent S&P 500 removal, adding pressure on a stock already trading near $14.
At the time of this announcement, CAG was trading at $13.74 on NYSE in the Trade & Services sector, with a market capitalization of approximately $6.8B. The 52-week trading range was $12.53 to $20.32. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.