Free Post Earnings Research Report: Conagra Brands’ Quarterly Earnings Increased 27.08%

LONDON, UK / ACCESSWIRE / April 24, 2018 / Active-Investors.com has just released a free earnings report on Conagra Brands, Inc. (NYSE: CAG) (“Conagra”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CAG. On March 22, 2018, Conagra reported financial results for the third quarter ended February 25, 2018. The Company surpassed analysts’ estimates for earnings but missed revenue forecasts for Q3 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Conagra Brands most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Conagra’s total sales reached $1.99 billion for Q3 FY18, reflecting an increase of 0.67% from $1.98 billion in Q3 FY17. The reported revenue fell behind analyst consensus estimates of $2.01 billion. Excluding the impact of foreign currency fluctuation and acquisitions, organic sales decreased 2.24% in Q3 FY18 on a y-o-y basis as improving performance in domestic retail consumption and increased price/mix were offset by reductions in retailer inventory levels.

During Q3 FY18, Conagra’s cost of goods sold was $1.4 billion, 2.61% higher than $1.36 billion in Q3 FY17. The Company’s gross profit fell 3.57% to $598.80 million in the quarter under review from $621 million in the year ago same quarter. The Company incurred selling, general, and administrative (SG&A) expenses of $330.20 million in Q3 FY18, a decrease of 5.58% from $349.70 million in Q3 FY17.

Conagra’s net income from continuing operations for Q3 FY18 was $349.20 million, an increase of 94.54% from $179.50 million in Q3 FY17. The Company’s DEPS from continuing operations also jumped 112.20% to $0.87 in the quarter under review from $0.41 in the year ago same quarter. Conagra’s reported quarter results included restructuring costs, acquisition and divestiture-related costs, and expense related to the early exit from an unfavorable lease contract. It also included benefit from substantial liquidation of an international joint venture, and tax reform adjustments related to the US tax reform. Excluding these non-recurring items, the Company’s adjusted diluted earnings per share (DEPS) was $0.61 in Q3 FY18, 27.08% higher than $0.48 in Q3 FY17. Adjusted DEPS exceeded analysts’ consensus estimates of $0.55 per share.

Conagra Brands’ Segment Details

The Grocery & Snacks segment’s net revenues were $838.30 million in Q3 FY18, a decrease of 1.26% from previous year’s comparable quarter. This segment’s adjusted operating profit was $178.40 million in Q3 FY18, 15.97% lower than the $212.30 million reported in Q3 FY17.

For Q3 FY18, the Refrigerated & Frozen segment’s net revenues advanced 3.19% to $688.50 million on a y-o-y basis. This segment had an adjusted operating profit of $126.90 million in Q3 FY18, a decrease of 0.55% from the $127.60 million reported in Q3 FY17.

During Q3 FY18, the International segment’s net revenues surged 8.87% to $223.40 million on a y-o-y basis. This segment’s adjusted operating profit for the quarter under review was $29.70 million, 66.85% higher than the $17.80 million reported in the year-ago corresponding quarter.

The Foodservice segment reported revenues of $244.30 million in Q3 FY18, 5.97% lower than the previous-year’s same quarter. The segment had an operating profit of $24 million in the reported quarter, 13.67% lower than $27.80 million in the previous year’s same quarter.

Cash Matters

Conagra had cash and cash equivalents of $132.90 million as on February 25, 2018, 47.14% lower than $251.40 million as on May 28, 2017.

Conagra’s cash flow from operating activities of continuing operations was $808.10 million for the 39-weeks ending February 25, 2018, an increase of 0.57% from $803.50 million for the 39-weeks ending February 26, 2017. The Company spent $175.90 million on additions to property plant and equipment in 9M FY18 compared to $158.50 million in 9M FY17.

In the quarter under review, Conagra paid a quarterly dividend of $0.2125 per share and repurchased approximately 8 million shares of its common stock for $280 million. Moreover, on February 26, 2018, the Company raised long-term loan of $300 million, which it utilized towards making a voluntary pension plan contribution of $300 million.

Outlook

For the full year 2018, Conagra expects its organic net sales growth to be near the high-end of the range of (2)% to flat and its adjusted operating margin to be in the low-end of the range of 15.9% to 16.3%. Besides, the Company intends to repurchase approximately $1.1 billion shares of its common stock in FY18, subject to market conditions.

Conagra also updated its guidance for several items for fiscal 2018. The Company expects its FY18 reported net sales growth to be about 150 basis points higher than the organic net sales growth rate due to the impacts of acquisitions and foreign exchange. And Conagra expects adjusted DEPS from continuing operations to be in the range of $2.03 to $2.05 in FY18.

On April 20, 2018, Conagra’s Board of Directors declared a quarterly dividend payment of $0.2125 per share, payable on May 31, 2018, to stockholders of record as of the close of business on April 30, 2018.

Stock Performance Snapshot

April 23, 2018 – At Monday’s closing bell, Conagra Brands’ stock marginally rose 0.19%, ending the trading session at $36.50.

Volume traded for the day: 2.94 million shares.

Stock performance in the last month – up 2.96%; and past six-month period – up 8.12%

After yesterday’s close, Conagra Brands’ market cap was at $14.66 billion.

Price to Earnings (P/E) ratio was at 23.61.

The stock has a dividend yield of 2.33%.

The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry.

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