Overview

• U.S. packaged foods maker's fiscal Q4 revenue up 3.6%, slightly beating analyst expectations

• Adjusted EPS for fiscal Q4 beat analyst expectations

• Company cut annualized dividend rate to $0.70 per share

Outlook

• Conagra sees fiscal 2027 organic net sales change of (3)% to (1)% vs fiscal 2026

• Company expects fiscal 2027 adjusted EPS between $1.40 and $1.50

• Conagra expects fiscal 2027 adjusted operating margin between 10.0% and 10.5%

Result Drivers

• COST INFLATION & OPERATING LEVERAGE - Productivity gains and tariff refunds were more than offset by cost of goods sold inflation and unfavorable operating leverage, leading to lower gross profit and margins

• HIGHER SG&A EXPENSES - SG&A rose due to restructuring charges, higher incentive compensation, and the 53rd week impact

• VOLUME DECLINES - Organic net sales were flat as a 1.6% positive price/mix was offset by a 1.6% decrease in volume

Company press release: ID:nPncgHFFWa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Slight Beat*	$2.90 bln	$2.89 bln (14 Analysts)
Q4 Adjusted EPS	Beat	$0.47	$0.46 (15 Analysts)
Q4 EPS		-$3.37
Q4 Adjusted Net Income	Beat	$228 mln	$219.75 mln (10 Analysts)
Q4 Net Income		-$1.60 bln
Q4 Adjusted EBIT Margin		11.70%
Q4 Adjusted Gross Margin		24.50%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 12 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "hold"

• Wall Street's median 12-month price target for Conagra Brands Inc is $14.00, about 1.1% below its July 14 closing price of $14.15

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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