Shares of Conagra Manufacturers, Inc. (NYSE: CAG) stayed inexperienced on Wednesday. The inventory has dropped 11% over the previous three months. The branded meals firm is scheduled to report its earnings outcomes for the second quarter of 2025 on Thursday, December 19, earlier than market open. Right here’s a have a look at what to anticipate from the Q2 earnings report:
Income
Analysts are projecting income of $3.15 billion for Conagra in Q2 2025. This compares to income of $3.20 billion reported in the identical interval a 12 months in the past. Within the first quarter of 2025, web gross sales decreased 3.8% year-over-year to $2.8 billion.
Earnings
The consensus estimate for earnings per share in Q2 2025 is $0.68. This compares to adjusted EPS of $0.71 reported within the prior-year quarter. In Q1 2025, adjusted EPS decreased practically 20% YoY to $0.53.
Factors to notice
Conagra anticipates the patron atmosphere to stay difficult in fiscal 12 months 2025 however it believes it is going to be in a position to navigate it via a robust technique and a resilient portfolio. The corporate anticipates sequential quantity restoration every quarter via the 12 months and it expects volumes to enhance within the second quarter in comparison with the primary quarter.
In Q1, Conagra noticed significant quantity enchancment in its home retail enterprise, with year-over-year development within the frozen and snack domains. The corporate noticed sturdy efficiency in single-serve meals and share positive aspects in frozen greens and multi-serve meals. CAG holds a lion’s share of quantity within the single-serve meals class and its investments have helped drive regular share enchancment on this space. The frozen greens enterprise additionally stays steady and optimistic. All these tendencies bode properly for the second quarter.
In snacks, the corporate is outpacing the whole snacking class helped by its portfolio that provides a number of on-trend choices reminiscent of meat snacks, popcorn, and seeds for health-conscious shoppers. It’s benefiting from positive aspects in its Slim Jim, Duke’s and BOOMCHICKAPOP manufacturers. This momentum is more likely to have continued in Q2.
Conagra is dealing with headwinds in its Foodservice enterprise as a consequence of impacts from the exit of low-margin enterprise and from softness in restaurant site visitors. The corporate is engaged on driving margin enchancment on this enterprise.
Conagra continues to reshape its portfolio via acquisitions and divestitures. Final quarter, it acquired FATTY Smoked Meat Sticks and divested its majority stake in Agro Tech Meals Restricted in India. Portfolio reshaping stays a key a part of the corporate’s development technique.