2024-04-04 07:44:01 ET
Conagra Brands Inc (NYSE: CAG) is trading up in premarket on Thursday after reporting roughly in-line financial results for its fiscal third quarter.
Should you buy Conagra Brands stock after earnings
Investors are cheering because the management reiterated its guidance for the future. Conagra forecasts its organic net sales to be down up to 2.0% on $2.60 to $2.65 of per-share earnings (adjusted) in fiscal 2024.
Analysts, in comparison, were at a share. Still, Delano Saporu of New Street Advisors recommends owning .
There are some things for the company that are struggling. But if you look at groceries and snacks side of the brand. That has actually consistently done well. International sales are strong. I think there’s strong value for investors here.
The consumer packaged goods company improved its adjusted operating margin by 49 basis points to 16.4% in Q3. Conagra stock is currently down over 20% versus its 52-week high.
Conagra Brands Q3 earnings snapshot
- Earned $308 million versus the year-ago $341 million
- Per-share earnings also declined from 72 cents to 64 cents
- Adjusted EPS printed at 64 cents as per the earnings report
- Net sales inched down 1.7% year-on-year to $3.03 billion
- Consensus was 65 cents a share on $3.03 billion in net sales
now expects its adjusted operating margin to be around 15.8% (upwardly revised), as per the earnings press release . Its CEO Sean Connolly said today:
Outstanding progress on cost savings initiatives allowed strategic investments in our brands while sustaining margin recovery. We continued to deliver substantial improvements in free cash flow. Our long-term focus remains generating value for our shareholders.
This is a developing story. Check back in a few minutes for more updates!
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