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Conagra Brands Readies for Q1 Earnings: What to Expect From CAG Stock?
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Key Takeaways
Conagra expects Q1 organic net sales to decline in the low-single-digit range amid soft category trends.
CAG expects Q1 adjusted operating margin in the high-single-digit range amid inflation and tariff costs.
Conagra targets productivity above 4% of the cost of goods sold while investing more in growth platforms.
Conagra Brands, Inc. (CAG - Free Report) is likely to witness a top-and bottom-line decline when it reports first-quarter fiscal 2027 earnings on Sept. 30. The Zacks Consensus Estimate for revenues is pegged at $2.6 billion, indicating a decrease of 1.4% from the year-ago reported number.
The consensus mark for earnings has remained unchanged over the past 30 days at 31 cents a share, which suggests a fall of 20.5% from the figure recorded in the year-ago period. CAG has a trailing four-quarter surprise of about 5%, on average.
Factors Likely to Influence CAG’s Upcoming Results
Conagra Brands’ first-quarter results are likely to be pressured by soft category trends and the lingering impact of inflation-justified pricing actions implemented during fiscal 2026. Management expects organic net sales to decline in the low-single-digit range, reflecting current category trends and the wrap of prior pricing actions. New pricing initiatives are not expected to reach the market until mid-second quarter, limiting their ability to support first-quarter sales.
Margins are also likely to have remained under pressure. Management expects heightened first-quarter inflation stemming from oil-related and logistics pressures, while the roughly $40 million fiscal 2027 tariff-related cost wrap is expected to over-index to the quarter. The planned step-up in advertising and promotional spending could have added to near-term costs. Conagra expects first-quarter adjusted operating margin in the high-single-digit range, which suggests a contraction from the year-ago period’s figure of 11.8%.
Some pressures may have been partly offset by productivity efforts and continued brand support. Conagra is targeting productivity above 4% of the cost of goods sold for fiscal 2027, while increased advertising investment is focused on growth platforms such as frozen meals and meat snacks. Recent volume-share gains in frozen meals and vegetables, along with momentum in meat snacks, may also have provided some support if sustained into the quarter.
Earnings Whispers for CAG
Our proven model doesn’t conclusively predict 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 odds of an earnings beat, which is not the case here.
Conagra Brands currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of +3.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Colgate-Palmolive Company (CL - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $5.3 billion, indicating an approximately 4% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Colgate-Palmolive’s earnings is pegged at 92 cents per share, implying 1.1% growth from the year-ago quarter. CL delivered a trailing four-quarter earnings surprise of 3.2%, on average.
Philip Morris International Inc. (PM - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $11.4 billion, which suggests 5.2% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Philip Morris’ upcoming quarter’s EPS is pegged at $2.29, which calls for a 2.2% increase from the year-ago period figure. PM delivered a trailing four-quarter earnings surprise of 6%, on average.
The Coca-Cola Company (KO - Free Report) currently has an Earnings ESP of +0.57% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $12.9 billion, which indicates an improvement of about 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s upcoming quarter’s EPS is pegged at 87 cents, which calls for 6.1% growth from the figure reported in the prior-year quarter. KO delivered a trailing four-quarter earnings surprise of 4.6%, on average.
View the Zacks #1 Rank List
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Conagra Brands Readies for Q1 Earnings: What to Expect From CAG Stock?
Key Takeaways
Conagra Brands, Inc. (CAG - Free Report) is likely to witness a top-and bottom-line decline when it reports first-quarter fiscal 2027 earnings on Sept. 30. The Zacks Consensus Estimate for revenues is pegged at $2.6 billion, indicating a decrease of 1.4% from the year-ago reported number.
The consensus mark for earnings has remained unchanged over the past 30 days at 31 cents a share, which suggests a fall of 20.5% from the figure recorded in the year-ago period. CAG has a trailing four-quarter surprise of about 5%, on average.
Conagra Brands Price, Consensus and EPS Surprise
Conagra Brands price-consensus-eps-surprise-chart | Conagra Brands Quote
Factors Likely to Influence CAG’s Upcoming Results
Conagra Brands’ first-quarter results are likely to be pressured by soft category trends and the lingering impact of inflation-justified pricing actions implemented during fiscal 2026. Management expects organic net sales to decline in the low-single-digit range, reflecting current category trends and the wrap of prior pricing actions. New pricing initiatives are not expected to reach the market until mid-second quarter, limiting their ability to support first-quarter sales.
Margins are also likely to have remained under pressure. Management expects heightened first-quarter inflation stemming from oil-related and logistics pressures, while the roughly $40 million fiscal 2027 tariff-related cost wrap is expected to over-index to the quarter. The planned step-up in advertising and promotional spending could have added to near-term costs. Conagra expects first-quarter adjusted operating margin in the high-single-digit range, which suggests a contraction from the year-ago period’s figure of 11.8%.
Some pressures may have been partly offset by productivity efforts and continued brand support. Conagra is targeting productivity above 4% of the cost of goods sold for fiscal 2027, while increased advertising investment is focused on growth platforms such as frozen meals and meat snacks. Recent volume-share gains in frozen meals and vegetables, along with momentum in meat snacks, may also have provided some support if sustained into the quarter.
Earnings Whispers for CAG
Our proven model doesn’t conclusively predict 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 odds of an earnings beat, which is not the case here.
Conagra Brands currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of +3.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Colgate-Palmolive Company (CL - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $5.3 billion, indicating an approximately 4% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Colgate-Palmolive’s earnings is pegged at 92 cents per share, implying 1.1% growth from the year-ago quarter. CL delivered a trailing four-quarter earnings surprise of 3.2%, on average.
Philip Morris International Inc. (PM - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $11.4 billion, which suggests 5.2% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Philip Morris’ upcoming quarter’s EPS is pegged at $2.29, which calls for a 2.2% increase from the year-ago period figure. PM delivered a trailing four-quarter earnings surprise of 6%, on average.
The Coca-Cola Company (KO - Free Report) currently has an Earnings ESP of +0.57% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $12.9 billion, which indicates an improvement of about 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s upcoming quarter’s EPS is pegged at 87 cents, which calls for 6.1% growth from the figure reported in the prior-year quarter. KO delivered a trailing four-quarter earnings surprise of 4.6%, on average.