Shares of Conagra Brands Inc. (CAG, -0.42%) slid 0.9% toward a nine-month low in premarket trading Thursday, after the branded foods company’s fiscal fourth-quarter revenue fell short of forecasts and the full-year outlook was downbeat.
Lower Net Income and Adjusted Earnings
The company, known for its popular brands such as Birds Eye, Slim Jim, Duncan Hines, and Hunt’s, reported that net income for the quarter ending May 28 declined to $37.5 million, or 8 cents a share, from $158.9 million, or 33 cents a share, in the year-ago period. Adjusted earnings per share, excluding nonrecurring items, also fell 4.6% to 62 cents. Nevertheless, this was slightly above the FactSet consensus of 60 cents.
Slight Increase in Sales, but Below Expectations
Sales increased by 2.2% to $2.97 billion, although it fell slightly below the FactSet consensus of $3.00 billion. The increase in sales was primarily driven by a 9.9% rise in prices and sales mix, which managed to offset a 7.7% drop in volume.
Disappointing Full-Year Outlook
For fiscal 2024, Conagra Brands Inc. expects adjusted earnings per share to be between $2.70 and $2.75. Unfortunately, this falls below the current FactSet consensus of $2.84.
Recent Stock Performance
The stock has experienced a 12.2% decline over the past three months through Wednesday, while the S&P 500 (SPX, +0.74%) has seen a gain of 7.9%.
Overall, Conagra Brands Inc. faces challenges ahead as it works to improve its financial performance and meet investor expectations.
