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ConAgra Brands (CAG) Tops Q2 EPS by 6c, Updates FY Guidance

December 19, 2019 7:29 AM

ConAgra Brands (NYSE: CAG) reported Q2 EPS of $0.63, $0.06 better than the analyst estimate of $0.57. Revenue for the quarter came in at $2.82 billion versus the consensus estimate of $2.8 billion.

GUIDANCE:

ConAgra Brands sees FY2020 EPS of $2.07-$2.17, versus the consensus of $2.09.

The Company is updating its fiscal 2020 guidance primarily to reflect the divestiture of the DSD snacks business and the exit of its private label peanut butter business, the process of which began subsequent to the quarter close. The updated guidance includes the expected results from the Lender's business for the full fiscal year.

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

Metric

Prior Fiscal 2020 Guidance

Updated Fiscal 2020 Guidance

Organic Net Sales Growth

+1.0% to +1.5%

+1.0% to +1.5%

Reported Net Sales Growth

+13.5% to +14.0%

+12.4% to +12.9%

Adj. Op. Margin

16.2% to 16.8 %

16.2% to 16.8%

Adj. Net Interest Expense

~$505 million

Slightly below $505 million

Adj. Effective Tax Rate

24% to 25%

~24%

Avg. Diluted Shares

~488 million

~488 million

Adj. Diluted EPS from cont. ops.

$2.08 to $2.18

$2.07 to $2.17

Free Cash Flow

~$1 billion

Slightly below $1 billion

The inability to predict the amount and timing of the impacts of foreign exchange, acquisitions, 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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