We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Conagra Brands (CAG) Readies for Q2 Earnings: Things to Note
Read MoreHide Full Article
Conagra Brands, Inc. (CAG - Free Report) is likely to register top and bottom-line growth when it reports second-quarter fiscal 2023 earnings on Jan 5. The Zacks Consensus Estimate for revenues is pegged at $3,269 million, suggesting an increase of 6.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the fiscal second-quarter bottom line has remained unchanged in the past 30 days at 65 cents per share. The projection indicates growth of 1.6% from the year-ago quarter’s reported figure.
We expect second-quarter net revenues to be up 2.9% year over year to $3,219 million and the bottom line to jump 3.4% to 66 cents a share.
Conagra Brands has a trailing four-quarter earnings surprise of 1.8%, on average. This consumer-packaged goods food company delivered an earnings surprise of 9.6% in the last reported quarter.
Conagra Brands’ efficient pricing initiatives have been offering respite amid cost headwinds. Management expects the inflationary landscape to persist in fiscal 2023.
Moreover, in fiscal 2023, CAG anticipates gross inflation (input cost inflation before hedging and other sourcing gains) in the low-teens range, which is likely to be weighted toward the first half of the year. To counter inflation, management unveiled an additional price increase in its last earnings release, which is likely to have been effective in the second quarter of fiscal 2023.
We believe that efficient pricing, together with innovation, bodes well for sales. Prudent innovations have been helping the company modernize its portfolio and meet consumers’ changing needs aptly. Some of the company’s new products have been top-performing in several categories, such as toppings, plant-based protein and single-serve meals.
Recovery in the Foodservice business, with restaurant traffic picking up, has also been a driver. In the first quarter of fiscal 2023, the Foodservice segment’s sales advanced 14.6% to $274.9 million.
With a continued rise in outdoor dining trends, the Foodservice business looks well-placed. Moving on, the strength of Conagra Brands’ frozen and snacks categories is noteworthy.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Conagra Brands this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Conagra Brands has a Zacks Rank #2 and an Earnings ESP of +5.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.3 billion, calling for growth of 8.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 71 cents is in line with the figure reported in the year-ago fiscal quarter. MDLZ has a trailing four-quarter earnings surprise of 6.4%, on average.
The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +2.11% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 78 cents suggests a decrease of 1.3% from the year-ago quarter.
Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.2 billion, indicating a rise of 6.6% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +4.72% and a Zacks Rank of 3. K is expected to register a top and bottom-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
Image: Bigstock
Conagra Brands (CAG) Readies for Q2 Earnings: Things to Note
Conagra Brands, Inc. (CAG - Free Report) is likely to register top and bottom-line growth when it reports second-quarter fiscal 2023 earnings on Jan 5. The Zacks Consensus Estimate for revenues is pegged at $3,269 million, suggesting an increase of 6.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the fiscal second-quarter bottom line has remained unchanged in the past 30 days at 65 cents per share. The projection indicates growth of 1.6% from the year-ago quarter’s reported figure.
We expect second-quarter net revenues to be up 2.9% year over year to $3,219 million and the bottom line to jump 3.4% to 66 cents a share.
Conagra Brands has a trailing four-quarter earnings surprise of 1.8%, on average. This consumer-packaged goods food company delivered an earnings surprise of 9.6% in the last reported quarter.
Conagra Brands Price, Consensus and EPS Surprise
Conagra Brands price-consensus-eps-surprise-chart | Conagra Brands Quote
Things to Consider
Conagra Brands’ efficient pricing initiatives have been offering respite amid cost headwinds. Management expects the inflationary landscape to persist in fiscal 2023.
Moreover, in fiscal 2023, CAG anticipates gross inflation (input cost inflation before hedging and other sourcing gains) in the low-teens range, which is likely to be weighted toward the first half of the year. To counter inflation, management unveiled an additional price increase in its last earnings release, which is likely to have been effective in the second quarter of fiscal 2023.
We believe that efficient pricing, together with innovation, bodes well for sales. Prudent innovations have been helping the company modernize its portfolio and meet consumers’ changing needs aptly. Some of the company’s new products have been top-performing in several categories, such as toppings, plant-based protein and single-serve meals.
Recovery in the Foodservice business, with restaurant traffic picking up, has also been a driver. In the first quarter of fiscal 2023, the Foodservice segment’s sales advanced 14.6% to $274.9 million.
With a continued rise in outdoor dining trends, the Foodservice business looks well-placed. Moving on, the strength of Conagra Brands’ frozen and snacks categories is noteworthy.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Conagra Brands this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Conagra Brands has a Zacks Rank #2 and an Earnings ESP of +5.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +6.67% and a Zacks Rank of 3. MDLZ is expected to register a top-line improvement when it reports fourth-quarter 2022 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.3 billion, calling for growth of 8.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 71 cents is in line with the figure reported in the year-ago fiscal quarter. MDLZ has a trailing four-quarter earnings surprise of 6.4%, on average.
The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +2.11% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 78 cents suggests a decrease of 1.3% from the year-ago quarter.
Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.2 billion, indicating a rise of 6.6% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +4.72% and a Zacks Rank of 3. K is expected to register a top and bottom-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.