10:22 AM EDT, 07/10/2025 (MT Newswires) -- Conagra Brands ( CAG ) issued a full-year earnings outlook below market estimates on Thursday amid persistent macroeconomic uncertainty and elevated inflation, while the packaged food company reported weaker-than-expected fiscal fourth-quarter results.
The company anticipates adjusted earnings to come in between $1.70 and $1.85 per share for fiscal 2026, below the current FactSet-polled consensus of $2.18. Organic sales are pegged to be down 1% to up 1% for the fiscal year. In fiscal 2025, adjusted EPS dropped 14% to $2.30 while organic sales decreased 2.9%.
The guidance reflects the impact of previously announced US tariffs, including 50% duties on imported tin plate steel and aluminum and 30% levies on limited Chinese imports, according to Conagra. These tariffs are expected to increase the cost of goods sold by roughly 3% on an annual basis before mitigation measures, such as targeted price hikes, the group said.
The parent of frozen food brands Birds Eye and Healthy Choice expects high inflation and macroeconomic uncertainty to persist in fiscal 2026, Chief Executive Sean Connolly said in a statement. Shares of the company fell 4.9% in Thursday trade.
Conagra remains focused on "proactively managing" its business, including focusing on volume gains, improving supply chain strength, and continuing to manage costs in a disciplined manner, according to Connolly. "We believe that these actions will enable Conagra to deliver sustainable growth and stronger margins over time, creating meaningful long-term value for our stakeholders," the CEO added.
For the three months through May 25, the company posted adjusted EPS of $0.56, down from $0.61 the year before and below the average analyst estimate of $0.58. Net sales declined 4.3% to $2.78 billion, missing the Street's view for $2.83 billion. On an organic basis, sales were down 3.5% amid a 2.5% decrease in volume and a 1% headwind from price and mix.
By segment, grocery and snacks revenue slipped 2.1% to $1.15 billion, while the refrigerated and frozen division dropped 4.4% to $1.12 billion. Foodservice sales also declined, while international revenue slid 14%.
"We navigated an environment that proved to be more challenging than we anticipated," Connolly said. "While the second half was impacted by higher than expected inflation, foreign exchange headwinds, and supply constraints, our long-term value creation strategy remains unchanged."
Price: 19.54, Change: -0.84, Percent Change: -4.15
