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Conagra (CAG) Queued for Q3 Earnings: Key Things to Note
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Conagra Brands, Inc. (CAG - Free Report) is likely to register growth in the top and the bottom line when it reports third-quarter fiscal 2021 numbers on Apr 8. The Zacks Consensus Estimate for revenues is pegged at $2.72 billion, which suggests a rise of 6.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the bottom line has been unchanged in the past 30 days at 58 cents per share, which indicates an increase of 23.4% from the year-ago quarter’s figure. Conagra’s bottom line outperformed the Zacks Consensus Estimate by almost 11% in the last reported quarter. Moreover, the company has a trailing four-quarter earnings surprise of 10%, on average.
Conagra’s retail business has been benefiting from rising at-home consumption amid the coronavirus outbreak. In its last earnings call, management noted that it continued to see a considerable increase in demand in the retail business in the third quarter of fiscal 2021, to date. Incidentally, the company expects organic sales growth of 6-8% in the to-be-reported quarter. Further, Conagra anticipates adjusted operating margin in the range of 16-16.5%, suggesting year-over-year growth of 30-80 basis points. Adjusted earnings per share is likely to have come between 56 cents and 60 cents during the fiscal third quarter.
Apart from these, the company’s e-commerce sales have been rapidly accelerating since the onset of the pandemic. This along with prudent product innovation and effective portfolio management efforts have been acting as upsides for the company. Notably, Conagra is on track with a range of innovation and brand-building efforts for exploring growth prospects in its frozen and snacks businesses.
While coronavirus-led increased at-home trends have boosted Conagra’s retail business, the same is dealing a blow to the Foodservice segment for a while now. The company continued to see lower demand for foodservice products when compared with the pre-pandemic level in the fiscal third quarter (till Jan 7). Apart from these, COVID-led costs as well as input cost inflation are likely to have been a threat to the company’s performance in the quarter to be reported.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Conagra this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Conagra carries a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.
The Boston Beer Company, Inc. (SAM - Free Report) currently has an Earnings ESP of +9.58% and carries a Zacks Rank #3.
Altria Group, Inc. (MO - Free Report) currently has an Earnings ESP of +0.14% and carries a Zacks Rank #3.
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Conagra (CAG) Queued for Q3 Earnings: Key Things to Note
Conagra Brands, Inc. (CAG - Free Report) is likely to register growth in the top and the bottom line when it reports third-quarter fiscal 2021 numbers on Apr 8. The Zacks Consensus Estimate for revenues is pegged at $2.72 billion, which suggests a rise of 6.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the bottom line has been unchanged in the past 30 days at 58 cents per share, which indicates an increase of 23.4% from the year-ago quarter’s figure. Conagra’s bottom line outperformed the Zacks Consensus Estimate by almost 11% in the last reported quarter. Moreover, the company has a trailing four-quarter earnings surprise of 10%, on average.
CONAGRA BRANDS Price and EPS Surprise
CONAGRA BRANDS price-eps-surprise | CONAGRA BRANDS Quote
Things to Note
Conagra’s retail business has been benefiting from rising at-home consumption amid the coronavirus outbreak. In its last earnings call, management noted that it continued to see a considerable increase in demand in the retail business in the third quarter of fiscal 2021, to date. Incidentally, the company expects organic sales growth of 6-8% in the to-be-reported quarter. Further, Conagra anticipates adjusted operating margin in the range of 16-16.5%, suggesting year-over-year growth of 30-80 basis points. Adjusted earnings per share is likely to have come between 56 cents and 60 cents during the fiscal third quarter.
Apart from these, the company’s e-commerce sales have been rapidly accelerating since the onset of the pandemic. This along with prudent product innovation and effective portfolio management efforts have been acting as upsides for the company. Notably, Conagra is on track with a range of innovation and brand-building efforts for exploring growth prospects in its frozen and snacks businesses.
While coronavirus-led increased at-home trends have boosted Conagra’s retail business, the same is dealing a blow to the Foodservice segment for a while now. The company continued to see lower demand for foodservice products when compared with the pre-pandemic level in the fiscal third quarter (till Jan 7). Apart from these, COVID-led costs as well as input cost inflation are likely to have been a threat to the company’s performance in the quarter to be reported.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Conagra this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Conagra carries a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.
Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +16.03% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Boston Beer Company, Inc. (SAM - Free Report) currently has an Earnings ESP of +9.58% and carries a Zacks Rank #3.
Altria Group, Inc. (MO - Free Report) currently has an Earnings ESP of +0.14% and carries a Zacks Rank #3.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>