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Nov 26, 2023
ConAgra Q2 2024 Earnings Report
Reported a decrease in net sales and EPS due to a challenging macro environment, while showing positive signs in volume trends and market share gains in the frozen business.
Key Takeaways
Conagra Brands reported a decrease in net sales by 3.2% and a decrease in diluted EPS by 24.1% to $0.60 for the second quarter of fiscal year 2024. Despite these declines, the company saw improved volume trends in its domestic retail business and strong market share gains in its frozen business.
Net sales decreased by 3.2%, with organic net sales down by 3.4%.
Operating margin decreased to 14.0%, with adjusted operating margin at 15.9%.
Diluted EPS decreased by 24.1% to $0.60, while adjusted EPS decreased by 12.3% to $0.71.
The company is updating its fiscal 2024 guidance, expecting organic net sales to decrease between 1.0% and 2.0% and adjusted EPS between $2.60 and $2.65.
Revenue by Segment
Forward Guidance
The company is lowering its fiscal 2024 organic net sales growth, operating margin, and adjusted EPS outlook to reflect year-to-date results, expectations for a slower volume recovery, and increased brand investments in the second half of the fiscal year.
Positive Outlook
- Organic net sales to decrease between 1.0% and 2.0% compared to fiscal 2023
- Adjusted operating margin is expected to be approximately 15.6%
- Adjusted EPS is expected to be between $2.60 and $2.65
- Capital expenditures of approximately $450M
- Interest expense of approximately $440M
Challenges Ahead
- The company is lowering its fiscal 2024 organic net sales growth outlook
- The company is lowering its fiscal 2024 operating margin outlook
- The company is lowering its fiscal 2024 adjusted EPS outlook
- Expectations for a slower volume recovery
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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