Lower-than-expected Q1 results lead to stock decline

  • Conagra Brands Inc.’s shares fell after reporting lower-than-expected profit and sales for Q1
  • Net income increased to $466.8 million from $319.7 million a year ago
  • Adjusted EPS was 53 cents, missing the FactSet consensus of 60 cents
  • Total sales dropped 3.8% to $2.79 billion, below the expected $2.84 billion
  • Grocery and snacks sales declined 1.7%, refrigerated and frozen sales fell 5.7%
  • International sales were down 0.4% and foodservice sales dropped 7.8%
  • Company affirmed its fiscal 2025 guidance for adjusted EPS between $2.60 and $2.65

Conagra Brands Inc., the parent company of Duncan Hines, Birds Eye, and Slim Jim, experienced a 2.5% drop in premarket trading after reporting lower-than-expected profit and sales for its first quarter. The company’s net income increased to $466.8 million from $319.7 million a year ago but missed the FactSet consensus of 60 cents per share. Total sales fell 3.8% to $2.79 billion, below the expected $2.84 billion. Grocery and snacks sales declined 1.7%, refrigerated and frozen sales dropped 5.7%, international sales were down 0.4%, and foodservice sales fell 7.8%. The company affirmed its fiscal 2025 guidance for adjusted EPS between $2.60 and $2.65.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Conagra Brands Inc.’s financial performance in the fiscal first-quarter, including specific numbers for net income, adjusted EPS, and sales figures for each business segment. It also mentions the company’s guidance for fiscal 2025 and compares the stock’s performance to the S&P 500 index.
Noise Level: 3
Noise Justification: The article provides relevant financial information about Conagra Brands Inc.’s performance and its guidance for fiscal 2025, but it lacks in-depth analysis or exploration of the reasons behind the missed expectations and potential consequences. It also does not offer actionable insights or solutions.
Public Companies: Conagra Brands Inc. (CAG), S&P 500 (SPX)
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Conagra Brands Inc.’s stock price and financial performance impacted
Financial Rating Justification: The article discusses the company’s financial performance, including missed expectations for profit and sales, which can affect its stock price and potentially impact other companies in the same industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: The market move size mentioned in this article is a 2.5% decrease in shares of Conagra Brands Inc. during premarket trading.
Sector: All
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

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