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Things to Note as Conagra Brands (CAG) Lines Up for Q4 Earnings
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Conagra Brands, Inc. (CAG - Free Report) is likely to register top-and bottom-line growth when it reports fourth-quarter fiscal 2022 earnings on Jul 14. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,931 million, suggesting a rise of almost 7% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2022 revenues is pegged at $11,547 million, indicating growth of 3.2% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at 64 cents per share, suggesting an increase of 18.5% from the figure reported in the prior-year quarter. The company’s consensus mark for the fiscal 2022 bottom line is pegged at $2.35 per share, indicating a decline of almost 11% from the year-ago period’s reported figure. Conagra Brands, a consumer packaged goods food company, has a trailing four-quarter earnings surprise of 0.5%, on average. CAG delivered an earnings surprise of 1.8% in the last reported quarter.
Conagra is benefiting from its e-commerce investments, which is yielding well. Continued focus on innovation is helping the company in capturing share across the snacks, frozen and staples categories. Prudent innovations have been helping Conagra modernize its portfolio and aptly meet consumers’ changing needs. Recovery in its Foodservice business as restaurant traffic picks up is aiding growth.
In its last earnings call, management highlighted that it is benefiting from better-than-anticipated consumer demand, lower-than-expected demand elasticities and increased planned pricing actions. The company expects organic net sales growth of almost 7% in the fourth quarter of fiscal 2022. Adjusted earnings per share (EPS) are envisioned at about 64 cents in the to-be-reported quarter. Management expects organic net sales growth of nearly 4%, while adjusted EPS is anticipated at about $2.35 in fiscal 2022.
Yet, Conagra is battling elevated cost of goods sold inflation. On its last call, management highlighted that costs were particularly higher for transport and protein, which remained high as the company started the fiscal fourth quarter. The company highlighted that although it is taking necessary pricing and saving actions, these are not likely to have fully offset input cost inflation in fiscal 2022 due to a timing lag between announcing and implementing these actions. The company expects gross inflation of nearly 16% in the fourth quarter and fiscal 2022.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Conagra this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Conagra carries a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Some Stocks With Favorable Combinations
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Archer Daniels (ADM - Free Report) currently has an Earnings ESP of +2.59% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for ADM’s quarterly earnings has moved up by almost 3% in the last seven days to $1.74 per share. The consensus mark indicates 30.8% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archer Daniels’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $25.3 billion, which suggests a rise of 10.2% from the figure reported in the prior-year quarter. ADM has delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +8.12% and a Zacks Rank of 3. The company will likely register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has been unchanged at $1.46 per share in the past 30 days. The consensus mark for CTVA suggests 4.3% growth from the year-ago quarter’s reported number.
Corteva’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which suggests a rise of 9.4% from the figure reported in the prior-year quarter. CTVA has delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Philip Morris International (PM - Free Report) currently has an Earnings ESP of +0.95% and a Zacks Rank of 3. The company is likely to register a decline in the top and bottom lines when it reports second-quarter 2022 results. The consensus mark for PM’s quarterly revenues is pegged at $6.53 billion, which suggests an almost 14% decline from the figure reported in the prior-year quarter.
The consensus mark for Philip Morris’ quarterly earnings has moved up by a penny in the past 30 days to $1.23 per share. The consensus estimate for PM’s second-quarter earnings suggests a decline of 21.7% from the year-ago quarter’s reported figure. PM has delivered an earnings beat of 3.5%, on average, in the trailing four quarters.
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Things to Note as Conagra Brands (CAG) Lines Up for Q4 Earnings
Conagra Brands, Inc. (CAG - Free Report) is likely to register top-and bottom-line growth when it reports fourth-quarter fiscal 2022 earnings on Jul 14. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,931 million, suggesting a rise of almost 7% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2022 revenues is pegged at $11,547 million, indicating growth of 3.2% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at 64 cents per share, suggesting an increase of 18.5% from the figure reported in the prior-year quarter. The company’s consensus mark for the fiscal 2022 bottom line is pegged at $2.35 per share, indicating a decline of almost 11% from the year-ago period’s reported figure. Conagra Brands, a consumer packaged goods food company, has a trailing four-quarter earnings surprise of 0.5%, on average. CAG delivered an earnings surprise of 1.8% in the last reported quarter.
Conagra Brands Price, Consensus and EPS Surprise
Conagra Brands price-consensus-eps-surprise-chart | Conagra Brands Quote
Things To Note
Conagra is benefiting from its e-commerce investments, which is yielding well. Continued focus on innovation is helping the company in capturing share across the snacks, frozen and staples categories. Prudent innovations have been helping Conagra modernize its portfolio and aptly meet consumers’ changing needs. Recovery in its Foodservice business as restaurant traffic picks up is aiding growth.
In its last earnings call, management highlighted that it is benefiting from better-than-anticipated consumer demand, lower-than-expected demand elasticities and increased planned pricing actions. The company expects organic net sales growth of almost 7% in the fourth quarter of fiscal 2022. Adjusted earnings per share (EPS) are envisioned at about 64 cents in the to-be-reported quarter. Management expects organic net sales growth of nearly 4%, while adjusted EPS is anticipated at about $2.35 in fiscal 2022.
Yet, Conagra is battling elevated cost of goods sold inflation. On its last call, management highlighted that costs were particularly higher for transport and protein, which remained high as the company started the fiscal fourth quarter. The company highlighted that although it is taking necessary pricing and saving actions, these are not likely to have fully offset input cost inflation in fiscal 2022 due to a timing lag between announcing and implementing these actions. The company expects gross inflation of nearly 16% in the fourth quarter and fiscal 2022.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Conagra this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Conagra carries a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Some Stocks With Favorable Combinations
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Archer Daniels (ADM - Free Report) currently has an Earnings ESP of +2.59% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for ADM’s quarterly earnings has moved up by almost 3% in the last seven days to $1.74 per share. The consensus mark indicates 30.8% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archer Daniels’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $25.3 billion, which suggests a rise of 10.2% from the figure reported in the prior-year quarter. ADM has delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +8.12% and a Zacks Rank of 3. The company will likely register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has been unchanged at $1.46 per share in the past 30 days. The consensus mark for CTVA suggests 4.3% growth from the year-ago quarter’s reported number.
Corteva’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which suggests a rise of 9.4% from the figure reported in the prior-year quarter. CTVA has delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Philip Morris International (PM - Free Report) currently has an Earnings ESP of +0.95% and a Zacks Rank of 3. The company is likely to register a decline in the top and bottom lines when it reports second-quarter 2022 results. The consensus mark for PM’s quarterly revenues is pegged at $6.53 billion, which suggests an almost 14% decline from the figure reported in the prior-year quarter.
The consensus mark for Philip Morris’ quarterly earnings has moved up by a penny in the past 30 days to $1.23 per share. The consensus estimate for PM’s second-quarter earnings suggests a decline of 21.7% from the year-ago quarter’s reported figure. PM has delivered an earnings beat of 3.5%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.