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Conagra (NYSE:CAG) Posts Q1 Sales In Line With Estimates, Stock Soars By Stock Story

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Packaged foods company Conagra Brands (NYSE:)
reported results in line with analysts’ expectations in Q1 CY2024, with revenue down 1.7% year on year to $3.03 billion. It made a non-GAAP profit of $0.69 per share, down from its profit of $0.76 per share in the same quarter last year.

Is now the time to buy Conagra? Find out by reading the original article on StockStory.

Conagra (CAG) Q1 CY2024 Highlights:

  • Revenue: $3.03 billion vs analyst estimates of $3.03 billion (small beat)
  • EPS (non-GAAP): $0.69 vs analyst estimates of $0.65 (6.2% beat)
  • Increasing full year guidance for operating margin to 15.8% from 15.6% previously (maintaining previously-provided full year organic sales and EPS guidance)
  • Gross Margin (GAAP): 28.3%, up from 27.2% in the same quarter last year
  • Free Cash Flow of $581.1 million, up 70.6% from the previous quarter
  • Organic Revenue was down 2% year on year (beat vs. expectations of down 2.6% year on year)
  • Sales Volumes were down 1.8% year on year
  • Market Capitalization: $13.89 billion

Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE:CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.

Shelf-Stable FoodAs America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there’s a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.

Sales GrowthConagra is one of the larger consumer staples companies and benefits from a well-known brand, giving it customer mindshare and influence over purchasing decisions.

As you can see below, the company’s annualized revenue growth rate of 1.1% over the last three years was weak as consumers bought less of its products. We’ll explore what this means in the “Volume Growth” section.

This quarter, Conagra reported a rather uninspiring 1.7% year-on-year revenue decline to $3.03 billion…

Click Here to Read the Full Original Article at All News…

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