Investing.com -- Conagra Brands, Inc. (NYSE: CAG) reported first quarter results that exceeded analyst expectations, with adjusted earnings per share of $0.41, beating the consensus estimate of $0.28 by $0.13.

Shares of the company rose 3.15% in pre-market trading following the announcement.

Revenue came in at $2.6 billion, slightly above the analyst estimate of $2.59 billion, though down 1.4% from the prior year period.

The company reaffirmed its fiscal 2027 guidance, projecting adjusted EPS between $1.40 and $1.50. The midpoint of $1.45 is slightly above the analyst consensus of $1.44.

Conagra also expects organic net sales to decline 3% to 1% compared to fiscal 2026, with adjusted operating margin between 10.0% and 10.5%.

Organic net sales decreased 1.1% in the quarter, driven by a 2.1% volume decline partially offset by a 1.0% positive impact from price and mix. The company gained dollar share in several categories including frozen vegetables, pudding, chili, frozen breakfast, hot dogs, and frozen desserts.

"We delivered a solid start to fiscal 2027 with top line results largely in line with expectations and profit ahead of expectations amid a challenging operating environment," said John Brase, president and chief executive officer.

Adjusted operating margin was 11.5% in the quarter, down 33 basis points from the prior year.

The company benefited from higher productivity and approximately $4 million in tariff refunds, though these gains were offset by lower organic sales and cost inflation.

The Grocery & Snacks segment saw organic sales decline 2.0%, while Refrigerated & Frozen fell 1.6%. International organic sales increased 0.9%, and Foodservice grew 3.3%.

Conagra ended the quarter with net debt of $7.4 billion, representing a net leverage ratio of 3.99x.

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