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Factors to Watch as Conagra (CAG) Gears Up for Q3 Earnings
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Conagra Brands, Inc. (CAG - Free Report) is likely to register a top-and-bottom-line increase from the respective year-ago fiscal quarter’s reading when it reports third-quarter fiscal 2023 earnings on Apr 5. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,092 million, suggesting a rise of 6.1% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 64 cents per share. The figure indicates a jump of 10.3% from the figure reported in the prior-year fiscal quarter. This consumer-packaged goods food company has a trailing four-quarter earnings surprise of 8.9%, on average. CAG delivered an earnings surprise of 22.7% in the last reported quarter.
We expect third-quarter revenues to increase 4.6% year over year to $3,047.9 million and adjusted earnings per share (EPS) to rise 6.2% to 62 cents.
Conagra Brands has been benefiting from strength in the frozen category. Conagra’s key frozen and snacks categories remained particularly strong in the second quarter of fiscal 2023, witnessing a solid share performance. The company saw an improved share in frozen single-serve meals, plant-based protein and frozen breakfasts.
Conagra has been strongly committed to undertaking innovation, which is the key to the company’s success. Prudent innovations have been helping CAG modernize its portfolio and meet consumers’ changing needs aptly. Conagra earlier said that it expects a sturdy performance from innovations in fiscal 2023. These upsides are likely to have aided the company in the quarter under review.
Also, robust pricing endeavors have been aiding the company amid cost headwinds. In the second quarter of fiscal 2023, the price/mix improved by 17% and aided the organic sales growth of 8.6%. The favorable price/mix was backed by the company’s inflation-induced pricing actions. The continuation of these upsides is likely to work well for Conagra amid cost inflation.
Conagra has been encountering cost inflation and supply-chain challenges for a while now. Management expects the inflationary landscape to persist in fiscal 2023. It also continues to anticipate supply-chain hurdles associated with the dynamic landscape.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Conagra Brands this time. 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, which is not the case here.
Conagra Brands has a Zacks Rank #3 and an Earnings ESP of -2.87%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the right combination of elements to beat earnings this time.
Simply Good Foods (SMPL - Free Report) currently has an Earnings ESP of +5.26% and a Zacks Rank #2. The company is expected to register a top-and-bottom-line decline when it reports second-quarter fiscal 2023 results. The consensus mark for Simply Good Foods’ revenues is pegged at $290.7 million, indicating a drop of 2% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS of 30 cents suggests a dip of 16.7% from the year-ago quarter. SMPL has a trailing four-quarter earnings surprise of 20.2%, on average.
Constellation Brands (STZ - Free Report) currently has an Earnings ESP of +2.36% and a Zacks Rank of 3. The company is likely to register a decrease in the top line when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Constellation Brands’ quarterly revenues is pegged at roughly $2 billion, which suggests a drop of 3.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for STZ’s quarterly EPS of $1.86 suggests a 21.5% decrease from the year-ago quarter. Constellation Brands has a trailing four-quarter earnings surprise of 6.1%, on average.
Purple Innovation (PRPL - Free Report) currently has an Earnings ESP of +10.26% and a Zacks Rank of 3. The company is likely to register a top-line decrease when it reports first-quarter 2023 results. The consensus mark for PRPL’s quarterly revenues is pegged at around $105 million, which suggests a decline of 26.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Purple Innovation’s bottom line has deteriorated by a penny to a loss of 6 cents per share in the past 30 days. The consensus estimate indicates an improvement from the year-ago quarter’s figure of a loss of 24 cents.
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Factors to Watch as Conagra (CAG) Gears Up for Q3 Earnings
Conagra Brands, Inc. (CAG - Free Report) is likely to register a top-and-bottom-line increase from the respective year-ago fiscal quarter’s reading when it reports third-quarter fiscal 2023 earnings on Apr 5. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,092 million, suggesting a rise of 6.1% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 64 cents per share. The figure indicates a jump of 10.3% from the figure reported in the prior-year fiscal quarter. This consumer-packaged goods food company has a trailing four-quarter earnings surprise of 8.9%, on average. CAG delivered an earnings surprise of 22.7% in the last reported quarter.
We expect third-quarter revenues to increase 4.6% year over year to $3,047.9 million and adjusted earnings per share (EPS) to rise 6.2% to 62 cents.
Conagra Brands Price, Consensus and EPS Surprise
Conagra Brands price-consensus-eps-surprise-chart | Conagra Brands Quote
Factors at Play
Conagra Brands has been benefiting from strength in the frozen category. Conagra’s key frozen and snacks categories remained particularly strong in the second quarter of fiscal 2023, witnessing a solid share performance. The company saw an improved share in frozen single-serve meals, plant-based protein and frozen breakfasts.
Conagra has been strongly committed to undertaking innovation, which is the key to the company’s success. Prudent innovations have been helping CAG modernize its portfolio and meet consumers’ changing needs aptly. Conagra earlier said that it expects a sturdy performance from innovations in fiscal 2023. These upsides are likely to have aided the company in the quarter under review.
Also, robust pricing endeavors have been aiding the company amid cost headwinds. In the second quarter of fiscal 2023, the price/mix improved by 17% and aided the organic sales growth of 8.6%. The favorable price/mix was backed by the company’s inflation-induced pricing actions. The continuation of these upsides is likely to work well for Conagra amid cost inflation.
Conagra has been encountering cost inflation and supply-chain challenges for a while now. Management expects the inflationary landscape to persist in fiscal 2023. It also continues to anticipate supply-chain hurdles associated with the dynamic landscape.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Conagra Brands this time. 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, which is not the case here.
Conagra Brands has a Zacks Rank #3 and an Earnings ESP of -2.87%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the right combination of elements to beat earnings this time.
Simply Good Foods (SMPL - Free Report) currently has an Earnings ESP of +5.26% and a Zacks Rank #2. The company is expected to register a top-and-bottom-line decline when it reports second-quarter fiscal 2023 results. The consensus mark for Simply Good Foods’ revenues is pegged at $290.7 million, indicating a drop of 2% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS of 30 cents suggests a dip of 16.7% from the year-ago quarter. SMPL has a trailing four-quarter earnings surprise of 20.2%, on average.
Constellation Brands (STZ - Free Report) currently has an Earnings ESP of +2.36% and a Zacks Rank of 3. The company is likely to register a decrease in the top line when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Constellation Brands’ quarterly revenues is pegged at roughly $2 billion, which suggests a drop of 3.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for STZ’s quarterly EPS of $1.86 suggests a 21.5% decrease from the year-ago quarter. Constellation Brands has a trailing four-quarter earnings surprise of 6.1%, on average.
Purple Innovation (PRPL - Free Report) currently has an Earnings ESP of +10.26% and a Zacks Rank of 3. The company is likely to register a top-line decrease when it reports first-quarter 2023 results. The consensus mark for PRPL’s quarterly revenues is pegged at around $105 million, which suggests a decline of 26.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Purple Innovation’s bottom line has deteriorated by a penny to a loss of 6 cents per share in the past 30 days. The consensus estimate indicates an improvement from the year-ago quarter’s figure of a loss of 24 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.