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Conagra Brands, Inc. CAG is likely to register a decline in its top and bottom lines when it reports third-quarter fiscal 2025 earnings on April 3. The Zacks Consensus Estimate for revenues is pegged at $2.9 billion, which suggests a decrease of 4.7% from the prior-year quarter’s reported figure. The consensus mark for quarterly earnings has moved down by a couple of cents in the past 30 days to 52 cents per share. This indicates a decline of 24.6% from the year-ago quarter’s reported figure. CAG has a trailing four-quarter negative earnings surprise of 2.4%, on average.
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Things to Consider About Conagra Brands’ Upcoming Results
Conagra has been experiencing cost inflation for a while now, which is affecting its profitability. In this regard, a persistent rise in protein costs and input inflation are a headwind. Its Foodservice unit has been under pressure, thanks to continued sluggishness in restaurant traffic, reflecting broader macroeconomic challenges and a slower-than-expected recovery in the out-of-home dining category.
Conagra Brands Price and EPS Surprise
Conagra Brands price-eps-surprise | Conagra Brands Quote
In a recent update, Conagra addressed its ongoing operational challenges, including supply chain disruptions and the impact of foreign exchange fluctuations during the third quarter of fiscal 2025. The company noted customer service interruptions caused by supply constraints on two key product categories: frozen meals containing chicken and frozen vegetables.
In the chicken-based frozen meals segment, production disruptions at a key facility were caused by product quality inconsistencies on the production lines. In response, the company temporarily halted production, implemented operational adjustments and resumed at a slower pace to restore product consistency. These actions resulted in lower volume, net sales and profit for the second half of fiscal 2025. In the frozen vegetables segment, a surge in consumer demand depleted inventory faster than anticipated.
Earnings Whispers for CAG Stock
Our proven model does not 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Conagra Brands currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -0.51%.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
RH RH currently has an Earnings ESP of +0.94% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for RH’s quarterly EPS is pegged at $1.91, up 165.3% from the year-ago period. RH has a trailing four-quarter negative earnings surprise of 113.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for RH’s quarterly revenues is pegged at $827.3 million, which implies an increase of 12.1% from the prior-year quarter.
Monster Beverage MNST currently has an Earnings ESP of +0.37% and a Zacks Rank of 3. The company is expected to register growth in its top and bottom lines when it reports first-quarter 2025 results. The Zacks Consensus Estimate for MNST’s quarterly earnings has been stable in the last 30 days at 46 cents per share, indicating 9.5% growth from the year-ago quarter's number.
The consensus estimate for Monster Beverage’s quarterly revenues is pegged at almost $2 billion, implying a rise of 3.7% from the figure in the prior-year quarter. MNST reported a negative earnings surprise of 5.8%, on average, in the trailing four quarters.
Tyson Foods, Inc. TSN currently has an Earnings ESP of +2.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS is pegged at 85 cents, which implies a 37.1% increase year over year.
The Zacks Consensus Estimate for Tyson Foods’ quarterly revenues is pegged at $13.1 billion, which indicates growth of 0.2% from the figure reported in the prior-year quarter. TSN reported an earnings surprise of almost 52%, on average, in the trailing four quarters.