Conagra Brands falls on weak fiscal 2027 earnings outlook

Investing.com -- Conagra Brands, Inc. (NYSE: CAG) reported fourth quarter results that slightly exceeded analyst expectations, but shares fell 3.2% premarket as the company issued fiscal 2027 guidance below Wall Street estimates.

The food manufacturer posted adjusted earnings per share of $0.47 for the fourth quarter ended May 31, 2026, beating the analyst consensus of $0.46 by $0.01. Revenue rose 3.6% YoY to $2.9 billion, edging past the $2.89 billion estimate. Organic net sales were approximately flat, driven by a 1.6% positive impact from price/mix offset by a 1.6% decrease in volume.

The company guided fiscal 2027 adjusted EPS to a range of $1.40 to $1.50, with a midpoint of $1.45, significantly below the analyst consensus of $1.70. 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%.

The company also announced a dividend reduction to an annualized rate of $0.70 per share.

"In fiscal 2026, our team delivered results within our guidance ranges, navigating a dynamic operating environment while demonstrating the resilience of our business and disciplined execution across the organization," said John Brase, president and chief executive officer of Conagra Brands.

For the full fiscal year 2026, adjusted EPS was $1.72, while net sales decreased 2.9% to $11.3 billion. Organic net sales declined 0.4%. Adjusted operating margin was 11.3% for the year, down from the prior year as productivity gains were offset by cost inflation and unfavorable operating leverage.

The company reported a net loss of $1.6 billion, or -$3.37 per diluted share, for the fourth quarter, primarily due to $2.0 billion in non-cash goodwill and brand impairment charges triggered by a sustained decline in the company's share price and market capitalization. Conagra generated $979 million in free cash flow for fiscal 2026 and reduced net debt by 11.9% to $7.1 billion.

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