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Conagra Profit Outlook Misses Street; Shares Dip
15 Jul
Summary
- Conagra forecasts fiscal 2027 adjusted profit below estimates.
- Company cited elevated commodity costs and cautious consumer spending.
- Shares fell as Conagra also announced a dividend cut.
Conagra Brands projected its adjusted profit for fiscal year 2027 to be between $1.40 and $1.50 per share, a figure that fell short of the $1.59 per share average estimate by analysts. This outlook suggests that the company anticipates persistent headwinds from elevated commodity expenses and a cautious consumer base.
In response to these financial pressures, Conagra Brands announced a reduction in its dividends. The company has previously attempted to mitigate rising costs, including higher beef prices and tariffs on packaging materials like steel and aluminum, by increasing its product prices.
Furthermore, Conagra expects a decline in organic net sales for the upcoming fiscal year, projecting a drop of 1% to 3%. This follows a 0.4% decrease observed in fiscal year 2026, indicating a continued trend of reduced sales volume.
