Conagra Brands Crushes Q4 Estimates, Stock Up 3%


Jun. 30 2020, Updated 10:11 a.m. ET

Conagra Brands (NYSE:CAG) stock rose 3.2% in pre-market trading at 8:57 AM ET today. The company reported stellar results for the fourth quarter of fiscal 2020, which ended May 31. The company posted better-than-expected results in the fourth quarter. Conagra Brands’ fourth-quarter sales and adjusted EPS beat Wall Street’s estimates.

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Conagra Brands’ Q4 earnings results

In the fourth quarter, Conagra Brands reported an adjusted EPS of $0.75 compared to $0.36 in the fourth quarter of fiscal 2019. The adjusted EPS beat analysts’ consensus estimate of $0.66. Conagra Brands generated sales of $3.29 billion—a rise of 25.8% from the fourth quarter of fiscal 2019. The company beat analysts’ consensus revenue estimate of $3.11 billion.

In the fourth-quarter earnings release, Conagra Brands CEO Sean Connolly said, “Our business clearly benefited from increased at-home eating in the fourth quarter, as the elevated retail demand outweighed the reduced foodservice demand. In retail, many consumers tried our modernized products for the first time and then returned for more.” Connolly also said, “While we are optimistic about the long-term implications of recent consumer behavior shifts, given COVID-19 uncertainties, we are only providing guidance for the first quarter of fiscal 2021.”

Conagra Brands expects the organic sales growth for the first quarter of fiscal 2021 to be 10%–13%. For the first quarter, the company also expects its adjusted EPS to be between $0.54 and $0.59.

Analysts’ recommendations and target price

Among the 16 analysts tracking Conagra Brands stock, eight recommend a “buy,” while eight recommend a “hold.” None of the analysts recommend a “sell.” Wall Street analysts’ mean target price on the stock is $35.43, which implies a 5.1% gain from the current level of $33.70. The consensus target price for the stock has risen from $33.86 in May—a growth of 4.6%.

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Stock returns

Conagra Brands stock rose 3.3% on Monday and ended the day at $33.70 with a market cap of $16.4 billion. Notably, the stock is trading 35.6% below its 52-week high of $35.59 and 47.6% above its 52-week low of $22.83.

Based on the closing price on Monday, Conagra Brands stock was trading 0.3% above its 20-day moving average of $33.61. The stock is also trading 0.03% above its 50-day moving average of $33.69 and 6.9% above its 100-day moving average of $31.53. Conagra Brands’ 14-day relative strength index score is 51. The score indicates that the stock isn’t overbought or oversold.

At 9:30 AM ET today, Kellogg (NYSE:K), J.M. Smucker (NYSE:SJM), and Campbell Soup (NYSE:CPB) shares have risen 0.83%, 0.76%, and 0.61%, respectively. However, the S&P 500 and the Dow Jones Industrial Average have fallen 0.1% and 0.3%, respectively. Read Will US Stock Markets Crash? IMF and Rogers Weigh In to learn more.


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