Conagra's stock drops as Q2 revenue and 2024 outlook fall short of analyst estimate
By Steve Gelsi
While food giant signals lower impact from inflation drop, it still face a 'challenging' economy
Conagra Brands Inc.'s stock was down by 2.4% in premarket trading on Thursday after the food giant's second-quarter revenue and 2024 profit outlook fell short of analyst estimates, despite a better-than-expected quarterly profit.
The Chicago-based company cited a challenging macroeconomic environment but said it saw positive volume trends in its domestic retail business "as inflation-driven volume declines were cut in half compared to Q1."
Conagra (CAG) said its second-quarter net income dipped by 0.1% to $478.7 million, or 60 cents a share, from $479.4 million, or 79 cents a share, in the year-ago quarter.
Its adjusted profit of 71 cents a share beat the FactSet consensus estimate of 68 cents a share.
Revenue dropped by 3.2% to $3.21 billion, short of the analyst estimate of $3.23 billion.
Looking ahead, Conagra expects adjusted 2024 profit of $2.60 to $2.65 a share, below the FactSet consensus estimate of $2.68 a share.
Conagra also reported market share gains in its frozen food business, along with moderating impact from inflation.
"These developments reinforced our confidence in investing to build momentum in the second half and set up a strong FY25," the company said.
Before Thursday's trades, Conagra's stock had fallen 26.8% in the past year, compared to a 22.1% gain by the S&P 500 SPX.
-Steve Gelsi
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01-04-24 0827ET
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