Conagra’s Valuation after Its 3Q17 Earnings
As of March 24, 2017, Conagra Brands (CAG) was trading at a 12-month forward PE (price-to-earnings) ratio of 21.9x.
About 64.0% of analysts covering Conagra (CAG) have recommended a “buy” for the stock, and 29.0% have recommended a “hold.”
Conagra Brands’ (CAG) adjusted gross margin expanded in fiscal 3Q17, despite lower sales and gross profit dollars.
Conagra Brands’ (CAG) business segments saw volumes fall due to its planned exit from several underperforming products.
Conagra Brands’ (CAG) fiscal 3Q17 sales of $1.98 billion fell marginally short of Wall Street’s expectations of $1.99 billion.
Conagra Brands’ (CAG) fiscal 3Q17 EPS topped analysts’ estimates. But sales fell again YoY and missed Wall Street analysts’ consensus estimate.
On March 23, 2017, Conagra Brands (CAG) reported mixed results for fiscal 3Q17, which ended February 26, 2017. The results showed signs of improvement.
Of the 19 analysts that cover General Mills, 10.5% rated it as a “buy,” 68.4% rated it as a “hold,” and 21.1% rated it as a “sell.”
As of March 23, 2017, General Mills was trading at a PE multiple of 18.5x—compared to 18.6x before the announcement of its fiscal 3Q17 earnings.
In fiscal 3Q17, General Mills posted diluted EPS of $0.61. After removing special or one-time expenses, the adjusted EPS stood at $0.72.
In fiscal 3Q17, General Mills (GIS) posted a gross margin, EBITDA margin, and net margin of 34.9%, 20.7%, and 11.2%, respectively.
Of the 18 analysts that cover General Mills (GIS), 16.7% gave it a “buy” recommendation, 72.2% gave it a “hold” recommendation, and 11.1% gave it a “sell” recommendation.
Analysts expect General Mills (GIS) to post EPS growth of 9.9% in the next four quarters.
General Mills (GIS) paid $0.48 in dividends on January 6, 2017, taking the total for fiscal 2017 to $1.44.
In fiscal 2Q17, the US Retail segment accounted for 61.3% of General Mills’s (GIS) total revenues.
Analysts expect General Mills (GIS) to post a gross margin of 36.4% in fiscal 3Q17, up from 34.8% in fiscal 3Q16.
In fiscal 2Q17, General Mills (GIS) posted a gross margin, EBITDA (earnings before interest, tax, depreciation, and amortization) margin, and net margin of 37.3%, 23.2%, and 12.4%, respectively.
General Mills (GIS) classifies its business into three operating segments: US Retail, International, and Convenience Stores and Foodservice.
According to a survey of 19 analysts that follow General Mills, 21.1% gave a “buy” recommendation, while 63.2% gave it a “hold,” and 15.8% gave it a “sell.”
Since the announcement of fiscal 1Q17 earnings on September 21, 2016, General Mills’ PE multiple has declined from 20.4x to 19.3x.