ConAgra Brands (CAG) Misses Q3 EPS by 1c, Updates FY20 Guidance

March 31, 2020 7:30 AM EDT

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ConAgra Brands (NYSE: CAG) reported Q3 EPS of $0.47, $0.01 worse than the analyst estimate of $0.48. Revenue for the quarter came in at $2.6 billion versus the consensus estimate of $2.58 billion.

Fiscal 2020 Outlook

The impact that the COVID-19 pandemic will have on the Company's fiscal 2020 consolidated results of operations is uncertain. The dynamic nature of the current situation makes it challenging for management to estimate future performance of the businesses, particularly over the near term.

To-date in the fourth quarter, the Company has seen significantly increased demand in its retail business. The Company has also started to see reduced demand for its foodservice products and expects a 50-60% decline in Foodservice organic net sales in the fourth quarter. The Company's supply chain has effectively serviced demand to-date.

As shown in the table below, the Company now expects to exceed prior full-year guidance for total-company sales and profit metrics, assuming the end-to-end supply chain continues to operate effectively.

Note that organic net sales growth excludes the impact of fiscal 2020's 53rd week. All other metrics include the impact of the 53rd week.


Prior Fiscal 2020 Guidance

Updated Fiscal 2020 Guidance

Organic Net Sales Growth

Flat to +0.5%

Above high end of range

Reported Net Sales Growth

+10.0% to +10.5%

Above high end of range

Adj. Op. Margin

15.8% to 16.2%

Above high end of range

Adj. Net Interest Expense

~$500 million

No change

Adj. Effective Tax Rate

23% to 24%

No change

Avg. Diluted Shares

~488 million

No change

Adj. Diluted EPS from Cont. Ops.

$2.00 to $2.07

Above high end of range

Free Cash Flow

~$950 million

Above $950 million

For earnings history and earnings-related data on ConAgra Brands (CAG) click here.

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