What to search for when Conagra Manufacturers (CAG) studies Q1 2024 earnings outcomes subsequent week

Shares of Conagra Manufacturers, Inc. (NYSE: CAG) have been down over 1% on Wednesday. The inventory has dropped 28% year-to-date and 16% over the previous three months. The branded meals firm is scheduled to report its first quarter 2024 earnings outcomes on Thursday, October 5, earlier than market open. Right here’s a have a look at what to anticipate from the earnings report:


Analysts are forecasting income of $2.96 billion for Conagra within the first quarter of 2024, which might signify a progress of practically 4% from the identical interval a yr in the past. Within the fourth quarter of 2023, gross sales elevated 2.2% year-over-year to $3 billion.


The consensus estimate for EPS is $0.60, which is larger than the $0.57 reported within the year-ago interval. In This autumn 2023, adjusted EPS decreased 5% YoY to $0.62.

Factors to notice

On its This autumn convention name, Conagra mentioned it anticipated to see a extra normalized working atmosphere in FY2024 with an ease in inflationary pressures and an enchancment in provide chain operations. The corporate expects its productiveness initiatives and investments in innovation to drive progress within the upcoming fiscal yr, which bodes properly for the primary quarter too.

On the similar time, it seems clients are shopping for fewer gadgets total which has led to a lag in quantity restoration. This development is anticipated to be a headwind within the close to time period. Volumes could have been impacted by this within the first quarter.

Within the fourth quarter, gross sales progress was pushed by a virtually 10% enchancment in worth/combine, which was partly offset by a virtually 8% decline in quantity. Gross revenue benefited from larger natural internet gross sales and productiveness. Gross margin elevated 183 foundation factors to 26.3% in This autumn.

In This autumn, Conagra noticed gross sales progress throughout all its segments, aside from Refrigerated & Frozen, which was pushed by favorable worth/combine. Volumes, nevertheless, declined throughout all segments. The corporate gained share in classes like snacks, pasta, sauces and multi-serve meals. These traits are prone to proceed within the first quarter.

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