UPDATE: ConAgra Brands (CAG) Reports In-Line Q4 EPS, Offers 3-Year and FY18 Guidance

June 29, 2017 7:28 AM EDT

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(Updated - June 29, 2017 7:30 AM EDT)

ConAgra Brands (NYSE: CAG) reported Q4 EPS of $0.37, in-line with the analyst estimate of $0.37. Revenue for the quarter came in at $1.86 billion versus the consensus estimate of $1.86 billion.

Long-Term Algorithm and Fiscal 2018 Outlook

The Company is reiterating its three-year fiscal 2020 financial algorithm, which uses fiscal 2017 as the base year, as summarized below:

  • Organic net sales compound annual growth rate (CAGR) in the range of 1% to 2%. Organic net sales growth is defined as net sales growth excluding the impacts of foreign exchange as well as acquisitions and divestitures until the anniversary date of the transactions.
  • Adjusted gross margin of approximately 32% for the full fiscal year 2020
  • Adjusted operating margin of approximately 16.5% for the full fiscal year 2020
  • Adjusted EPS CAGR of approximately 10%
  • Annual dividend payout ratio of between 45% and 50%

The Company is providing fiscal 2018 guidance as summarized below:

  • Reported net sales growth in the range of (2)% to flat
  • Organic net sales growth in the range of (2)% to flat
  • Adjusted operating margin in the range of 15.9% to 16.3%
  • Effective tax rate in the range of 32.5% to 33.5%
  • Adjusted diluted EPS from continuing operations in the range of $1.84 to $1.89
  • The Company expects to repurchase approximately $1.1 billion of shares of its common stock in the fiscal year, subject to market and other conditions
  • The fiscal 2018 Outlook includes the expected results of the Wesson oil brand for the full fiscal year.

(Street sees FY18 EPS of $1.88)

The inability to predict the amount and timing of the impacts of foreign exchange, acquisitions, and divestitures and other items impacting comparability makes a detailed reconciliation of these forward-looking non-GAAP financial measures impracticable. Please see the end of this release for more information.

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

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