10:41 AM EDT, 10/02/2024 (MT Newswires) -- Conagra Brands' ( CAG ) fiscal first-quarter results fell year over year and missed Wall Street estimates, impacted by lower volumes and price headwinds.

The packaged food maker reported adjusted earnings of $0.53 a share for the three months through Aug. 25, down from $0.66 the year before and below the Capital IQ-polled consensus of $0.60. Sales fell 3.8% year over year to $2.79 billion, trailing the Street's view for $2.84 billion. The stock fell 7.5% in Wednesday trading.

On an organic basis, sales dropped 3.5% driven by a 1.9% negative impact from pricing amid the company's strategic investments in the quarter, and a 1.6% reduction in volume. The results in the quarter also saw an impact of roughly $27 million due to temporary manufacturing disruptions in the Hebrew National business during the key grilling season, Conagra said.

"Our team executed well to deliver on key priorities across the business during the first quarter in what continued to be a challenging environment," Chief Executive Sean Connolly said in a statement. "Our domestic retail volume progressed in-line with expectations, we increased share across the portfolio and advanced our portfolio reshaping initiatives."

In the grocery and snacks division, sales declined 1.7% to $1.18 billion amid lower prices and volume. Refrigerated and frozen revenue slipped 5.7% to $1.09 billion due to a 5.8% drop in price and mix. International sales fell 0.4% to $259.1 million while foodservice slid 7.8% to $266.7 million.

Conagra continues to project adjusted EPS between $2.60 and $2.65 for fiscal 2025, while the Street is looking for $2.61. The company reiterated its full-year organic sales guidance to be in a range of a 1.5% decline to flat versus the previous year.

"Overall, we are reaffirming our guidance for fiscal 2025, reflecting confidence in the underlying momentum of our business," according to Connolly.

For the ongoing quarter, the company anticipates topline and volume improvement on a sequential basis, Chief Financial Officer Dave Marberger said in prepared remarks.

Price: 30.05, Change: -2.67, Percent Change: -8.16