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Conagra Brands (CAG) to Post Q3 Earnings: A Beat in Store?
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Conagra Brands, Inc. (CAG - Free Report) is slated to report third-quarter fiscal 2018 results (ended February 2018) on Mar 22, before the market opens.
The company pulled off an average positive earnings surprise of 6.16% over the preceding four quarters. In second-quarter fiscal 2018, its adjusted earnings of 55 cents per share handily outpaced the Zacks Consensus Estimate by 5.8%.
Our proven model shows that Conagra’s earnings will likely beat estimates in the to-be-reported quarter.
Why a Likely Positive Surprise?
Conagra has the right combination of the two key ingredients.
Zacks Rank & ESP: Conagra’s favorable Zacks Rank #3 (Hold), when combined with an Earnings ESP of +6.06%, predicts a likely earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that we caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
What’s Driving the Better-Than-Expected Earnings?
Conagra had planned to make investments in its U.S. retail business, and increase the scale of merchandizing, distribution and consumer trail-related activities for the company’s existing brands during the fiscal third quarter. These moves will likely help bolster the company’s revenues in the quarter. Notably, sturdier sales of major brands like Healthy Choice, Marie Callender, Slim Jim, Duke's, Bigs and Frontera is expected to boost top-line going forward.
The Zacks Consensus Estimates for revenues of the Refrigerated & Frozen and Grocery & Snacks segments are currently pegged at $677 million and $873 million, respectively, for the fiscal third quarter, higher than the corresponding tallies of $666 million and $850 million generated in the prior-year quarter.
Also, the Zacks Consensus Estimate for revenues of the company’s International segment is pegged at $205 million for the quarter to be reported, in line with the sales recorded in the year-ago period.
Moreover, the acquisitions of Angie's Artisan Treats, LLC (Oct 23, 2017) and Sandwich Bros. (Feb 5, 2018) are expected to strengthen the company’s financial fundamentals in the quarters ahead.
Apart from a robust top-line performance, Conagra expects that lower corporate tax rates (resulting from the Tax Cuts and Jobs Act enactment) will also aid in enhancing its near-term profitability.
Furthermore, we anticipate that lower interest expenses, greater operational efficacy, favorable mix and higher pricing will help boost Conagra’s earnings in the fiscal third quarter.
Other Stocks to Consider
Here are some stocks in the Zacks Consumer Staples sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Another Zacks #2 Ranked player is Blue Buffalo Pet Products, Inc. (BUFF - Free Report) with an Earnings ESP of +3.60%.
Also, we have The Estee Lauder Companies Inc. (EL - Free Report) , with a Zacks Rank of 2 and an Earnings ESP of +2.61%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.
Image: Bigstock
Conagra Brands (CAG) to Post Q3 Earnings: A Beat in Store?
Conagra Brands, Inc. (CAG - Free Report) is slated to report third-quarter fiscal 2018 results (ended February 2018) on Mar 22, before the market opens.
The company pulled off an average positive earnings surprise of 6.16% over the preceding four quarters. In second-quarter fiscal 2018, its adjusted earnings of 55 cents per share handily outpaced the Zacks Consensus Estimate by 5.8%.
Our proven model shows that Conagra’s earnings will likely beat estimates in the to-be-reported quarter.
Why a Likely Positive Surprise?
Conagra has the right combination of the two key ingredients.
Zacks Rank & ESP: Conagra’s favorable Zacks Rank #3 (Hold), when combined with an Earnings ESP of +6.06%, predicts a likely earnings beat.
Conagra Brands Inc. Price and EPS Surprise
Conagra Brands Inc. Price and EPS Surprise | Conagra Brands Inc. Quote
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that we caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
What’s Driving the Better-Than-Expected Earnings?
Conagra had planned to make investments in its U.S. retail business, and increase the scale of merchandizing, distribution and consumer trail-related activities for the company’s existing brands during the fiscal third quarter. These moves will likely help bolster the company’s revenues in the quarter. Notably, sturdier sales of major brands like Healthy Choice, Marie Callender, Slim Jim, Duke's, Bigs and Frontera is expected to boost top-line going forward.
The Zacks Consensus Estimates for revenues of the Refrigerated & Frozen and Grocery & Snacks segments are currently pegged at $677 million and $873 million, respectively, for the fiscal third quarter, higher than the corresponding tallies of $666 million and $850 million generated in the prior-year quarter.
Also, the Zacks Consensus Estimate for revenues of the company’s International segment is pegged at $205 million for the quarter to be reported, in line with the sales recorded in the year-ago period.
Moreover, the acquisitions of Angie's Artisan Treats, LLC (Oct 23, 2017) and Sandwich Bros. (Feb 5, 2018) are expected to strengthen the company’s financial fundamentals in the quarters ahead.
Apart from a robust top-line performance, Conagra expects that lower corporate tax rates (resulting from the Tax Cuts and Jobs Act enactment) will also aid in enhancing its near-term profitability.
Furthermore, we anticipate that lower interest expenses, greater operational efficacy, favorable mix and higher pricing will help boost Conagra’s earnings in the fiscal third quarter.
Other Stocks to Consider
Here are some stocks in the Zacks Consumer Staples sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Archer Daniels Midland Company (ADM - Free Report) carries a Zacks Rank #2 (Buy) and has an Earnings ESP of +3.31%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Another Zacks #2 Ranked player is Blue Buffalo Pet Products, Inc. (BUFF - Free Report) with an Earnings ESP of +3.60%.
Also, we have The Estee Lauder Companies Inc. (EL - Free Report) , with a Zacks Rank of 2 and an Earnings ESP of +2.61%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>