Shares of Conagra Manufacturers, Inc. (NYSE: CAG) had 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 take 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 development of practically 4% from the identical interval a 12 months 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 increased 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 stated it anticipated to see a extra normalized working surroundings 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 development within the upcoming fiscal 12 months, which bodes effectively for the primary quarter too.
On the similar time, it seems prospects are shopping for fewer objects total which has led to a lag in quantity restoration. This pattern is anticipated to be a headwind within the close to time period. Volumes might have been impacted by this within the first quarter.
Within the fourth quarter, gross sales development was pushed by an almost 10% enchancment in worth/combine, which was partly offset by an almost 8% decline in quantity. Gross revenue benefited from increased natural web gross sales and productiveness. Gross margin elevated 183 foundation factors to 26.3% in This autumn.
In This autumn, Conagra noticed gross sales development throughout all its segments, apart 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.