-=Conagra (CAG) reported earnings on Tue 31 March 20 (b/o)

• Thu 3/26:  #7, 29, 75; vol. 5.7M;  $27.85  --> +5%

Conagra misses by $0.02, misses on revs; sees FY20 EPS and revs above high end of prior ranges

Reports Q3 (Feb) earnings of $0.47 per share, excluding non-recurring items, $0.02 worse than the S&P Capital IQ Consensus of $0.49; revenues fell 5.6% year/year to $2.56 bln vs the $2.59 bln S&P Capital IQ Consensus.

The 1.7% decrease in organic net sales was driven by a 1.3% decline in volume and an unfavorable price/mix impact of 0.4%. Volume was below planned levels in the quarter as the Company's retail and foodservice businesses experienced broad-based category softness early in the quarter.

Co issues upside guidance for FY20, sees EPS of above higher end of $2.00-2.07, excluding non-recurring items, vs. $2.04 S&P Capital IQ Consensus; sees FY20 revs of +10.0-10.5% to $10.49-10.54 bln vs. $10.54 bln S&P Capital IQ Consensus.

Sean Connolly, president and chief executive officer of Conagra Brands, commented, "Through the third quarter, we remained squarely on-track to deliver on our fiscal 2020 operational objectives, and our third quarter results were in-line with our updated expectations." He continued, "In more recent weeks, the entire team at Conagra Brands has been focused on supporting our customers, consumers, employees, and communities in the face of the COVID-19 pandemic. While we are still early in our fourth quarter, we have seen significantly elevated demand for our retail products as consumers have started filling their pantries for more at-home eating."

Earnings this week : March 30 - April 3, 20 (wk 14)

Monday (March 30)

• Morning: CALM GNLN
• Afternoon: RH VFF

Tuesday (March 31)

• Morning: CAG MKC
• Afternoon: BB PAYS PUMP VRNT

Wednesday (April 1)

• Morning: LW UNF
• Afternoon: PVH

Thursday (April 2)

• Morning: AYI APOG KMX SCHN WBA
• Afternoon: CHWY RECN

Friday (April 3)

• Morning: STZ

-=Conagra (CAG) reported earnings on Thur 27 June 19 (b/o)

Conagra misses by $0.05, misses on revs; slightly lowers FY20 EPS guidance; sees FY20 revs below consensus following Gelit divestiture

• Reports Q4 (May) earnings of $0.36 per share, $0.05 worse than the S&P Capital IQ Consensus of $0.41; revenues rose 32.9% year/year to $2.61 bln vs the $2.66 bln S&P Capital IQ Consensus.
• Adjusted EBITDA, which includes equity method investment earnings and pension and postretirement non-service income, increased 22.2% to $458 mln in the quarter, driven by the addition of Pinnacle's operating profit.
• Co issues guidance for FY20, sees EPS of $2.08-2.18 from $2.10-2.20 vs. $2.16 S&P Capital IQ Consensus; sees FY20 revs of +13.5%-14.0% to $10.83-10.87 bln vs. $10.88 bln S&P Capital IQ Consensus. Co FY20 sees organic net sales growth of +1.0-1.5% (prior was +1).
• The Company is providing an update to its fiscal 2022 financial algorithm to adjust for the divestiture of the Gelit business. Excluding the adjustment for Gelit, the algorithm has not changed from that previously provided at the Company's Investor Day in April 2019. Organic net sales growth 3-year CAGR ending fiscal 2022 of 1% to 2%. Adjusted operating margin in fiscal 2022 of 18% to 19%. Adjusted EPS in fiscal 2022 of $2.68 to $2.78. This metric has been adjusted to reflect the divestiture of Gelit.

Earnings this week : June 24 - 28, 19 (wk 26)

Earnings confirmed for this week

Monday (June 24)

• None

Tuesday (June 25)

• Morning: BNED FDS LEN
• Afternoon: AVAV FDX MU SNX

Wednesday (June 26)

• Morning: ATU BB GIS INFO PAYX SCHN UNF
• Afternoon: FUL MLHR KBH WOR

Thursday (June 27)

• Morning: ACN APOG CAG GMS MKC PDCO SJR WBA
• Afternoon: CAMP NKE PRGS SGH

Friday (June 28) 

• Morning: STZ JKS

Notable earnings reports: Micron (NASDAQ:MU), FedEx (NYSE:FDX), Lennar (NYSE:LEN) and FactSet Research (NYSE:FDS) on June 25; Rite Aid (NYSE:RAD), Blackberry (NYSE:BB), National Beverage (NASDAQ:FIZZ) and General Mills (NYSE:GIS) on June 26; Nike (NYSE:NKE), Walgreen Boots Alliance (NASDAQ:WBA) and ConAgra Brands (NYSE:CAG) on June 27; Constellation Brands (NYSE:STZ) on June 28.

Spotlight on FedEx: Analysts expect FedEx (FDX) to report revenue of $17.88B and EPS of $4.39 with its FQ4 report. JPMorgan turned some heads by predicting that FedEx would clear the decks with below-consensus guidance across the board. FedEx conference call topics will run the course from fuel costs, tariff headwinds, wage inflation pressure to Amazon. Naturally, shares of UPS (NYSE:UPS) could see a jolt if FedEx surprises to the upside or downside with guidance. So far this year, shares of FedEx are up 4.1% to trail the 5.7% gain for UPS.

Playing Nike earnings: Nike (NKE) is expected to report revenue of $10.2B and EPS of $0.66 when it reports on July 27. Oppenheimer thinks Nike's stepped up investment spending could drag down FQ4 profit and the company's full-year guidance to act as a near-term negative catalyst for shares. "We recommend clients use any share price weakness in NKE as a buying opportunity. In our view, higher costs at the company are strategic in nature and will help to further enhance the prowess of the brand, over time," advises the firm. Foot Locker (NYSE:FL), Under Armour (NYSE:UAA) and Adidas (OTCQX:ADDYY) have all been known to swing up or down with Nike on earnings day.

-=Conagra (CAG) earnings on Thur 21 March 19 (b/o)

Conagra beats by $0.02, misses on revs; reaffirms FY19 EPS guidance, updates other projections following sale of Wesson

• Reports Q3 (Feb) earnings of $0.51 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $0.49; revenues rose 35.7% year/year to $2.71 bln vs the $2.75 bln S&P Capital IQ Consensus.
• Gross profit increased 25.6% to $752 million in the quarter. Adjusted gross profit increased 30.5% to $781 million, or 28.9% of net sales. The addition of Pinnacle's gross profit, together with supply chain realized productivity and improved price/mix in the Legacy Conagra business, more than offset higher transportation and input costs as well as the previously-mentioned brand building investments with retailers. Pinnacle's gross margin performance in the quarter was dilutive to the Company's overall gross margin, and the shift from A&P expense to brand building investments with retailers reduced gross margin by approximately 100 basis points.
• Updated FY19 Guidance (Prior guidance included Wesson for the full fiscal year, which was divested in February):
  • Co reaffirms EPS guidance of $2.03-2.08, excluding non-recurring items, vs. $2.05 S&P Capital IQ Consensus.
  • Sees Organic Net Sales Growth of ~1% (Prior 1-2%) [The updated organic net sales growth guidance removes Wesson for the entire fiscal year.]
  • Sees Adj. Gross Margin below prior range of 29.3-29.6%, but Adj. Operating Margin above prior range of 14.9-15.2%
  • Sees FY19 Synergies above prior guidance for $20 mln
  • Sees Pinnacle reported net sales of $1.71-1.73 bln (Prior $1.7-1.75 bln)
  • Sees Pinnacle Adj. Operating Margin near high-end of 14.6-14.9% range
• "The integration of Pinnacle Foods, and the reinvigoration of its innovation pipeline, remain squarely on-track. We are aggressively applying our proven 'Conagra Way' to address the executional challenges in the Birds Eye, Duncan Hines and Wish-Bone businesses. While it will take some time to return these Pinnacle businesses to growth, we are confident that we have identified the issues and have the right action plans in place to improve the performance of these terrific brands. We have tremendous confidence in the long-term value creation potential of Conagra Brands and look forward to providing a comprehensive update at our upcoming Investor Day on April 10."

This week's biggest % winners & losers : Dec 17 - 21, 18 (wk 51)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare: CIVI (17.46 +18.94%)
• Materials: CDE (4.57 +19.63%), AGI (3.53 +18.86%), AUY (2.34 +10.38%), PVG (8.19 +10.38%), BVN (16.09 +9.16%), KGC (3.12 +8.33%), AG (5.55 +7.77%), RGLD (82.54 +7.73%), FSM (3.55 +7.25%), OR (8.4 +7.14%), HMY (1.71 +6.87%)
• Industrials: ABM (30.19 +16.56%), ATSG (20.28 +15.49%)
• Consumer Discretionary: TTM (12.37 +7.29%)
• Information Technology: JBL (23.4 +7.14%)
• Financials: LION (24.88 +16.15%)

This week's top 20 % losers

• Healthcare: GTHX (17.01 -44.25%), AXGN (17.09 -40.24%), SPPI (7.24 -37.48%), EDIT (18.19 -36.06%), PRGO (37.03 -35.02%), AKBA (5.42 -28.96%)
• Energy: BPT (18.37 -32.69%), CRC (14.82 -29.29%)
• Telecommunication Services: CBB (6.7 -28.27%)
• Consumer Staples: CAG (22.15  -25.89%)

Conagra (CAG) reported earnings on Thur 20 Dec 18 (b/o)

** charts after earnings **

 

Conagra beats by $0.11, misses on revs; guides FY19 EPS below consensus, reaffirms FY19 revs guidance

• Reports Q2 (Nov) earnings of $0.67 per share, excluding non-recurring items, $0.11 better than the S&P Capital IQ Consensus of $0.56; revenues rose 9.7% year/year to $2.38 bln vs the $2.41 bln S&P Capital IQ Consensus.
  • Adjusted gross profit increased 7.6% to $704 million or 29.5% of net sales. The addition of Pinnacle's gross profit, together with supply chain realized productivity and improved pricing in the Legacy Conagra business, more than offset higher transportation and input costs and the previously-mentioned increases in retailer marketing for the Legacy Conagra business.
  • For the 31 days between the Pinnacle acquisition closing date and the quarter end, net sales for the Pinnacle segment totaled $259 million. Net sales were below expectations due to weak performance across a range of significant brands, as well as the impact of a product recall on Duncan Hines.
  • Net sales for the Grocery & Snacks segment were relatively flat at $900 million in the quarter, and organic net sales declined 1.9%.
  • Net sales for the Refrigerated & Frozen segment increased 1.7% to $771 million in the quarter, and organic net sales grew 0.5%.
• Co issues guidance for FY19, sees EPS of $2.03-2.08, excluding non-recurring items, vs. $2.12 S&P Capital IQ Consensus; sees FY19 revs growth of 22-23% (implying $9.685-9.764 bln) vs. $9.74 bln S&P Capital IQ Consensus.
• Co states, "Additionally, we expect to over-deliver on our cost synergy target. While we are starting from a lower base in fiscal 2019, we expect to deliver strong EPS growth off that base and hit the fiscal 2022 EPS target that drove our original EPS accretion guidance for this transaction, and we remain committed to our previously-communicated leverage target. We look forward to providing a more comprehensive update at our Investor Day."

The following day

Today, Conagra Brands (CAG) shares were down 8%, after dropping nearly 17% Thursday. Conagra closed on its $10.7 billion acquisition of Pinnacle Foods in the fourth quarter, and management gave disappointing guidance when they reported earnings Thursday.

Earnings this week : December 17 - 21, 2018 (wk 51)

Earnings confirmed to report next week

Monday (Dec 17) 

• Morning: None
• Afternoon: HEI ORCL RHT

Tuesday (Dec 18)

• Morning: DRI FDS NAV WOR
• Afternoon: ABM AIR FDX JBL MU SCS 

Wednesday (Dec 19)

• Morning: GIS NCS PAYX WGO
• Afternoon: MLHR PIR RAD REVG

Thursday (Dec 20)

• Morning: ACN APOG ATU BB CAG CCL CTAS NEOG  SAFM SCHL SID WBA
• Afternoon: CAMP CTAS NKE  

Friday (Dec 21)

• KMX

CAG — is it a buy?

• Oct. 8: Is CAG a buy?   

• 2 months later:

=Conagra (CAG) reported earnings on Thur 27 Sept 18 (b/o)

Conagra misses by $0.02, reports revs in-line; guides Q2 EPS below consensus; reaffirms FY19 revs guidance 

• Reports Q1 (Aug) earnings of $0.47 per share, $0.02 worse thanthe S&P Capital IQ Consensus of $0.49; revenues rose 1.7% year/year to $1.83 bln vs the $1.85 bln S&P Capital IQ Consensus. Organic net sales growth, excluding Trenton, in the range of 1.0% to 2.0%. Adjusted gross margin in the range of 29.7% to 30.0%. Input cost inflation in the range of 3.0% to 3.2%. 
• Co issues downside guidance for Q2, sees EPS of $0.57-0.60, excluding non-recurring items, vs. $0.65 S&P Capital IQ Consensus. Q2 revenue guidance: Reported net sales growth is expected to be approximately 40 basis points lower than the organic net sales growth rate, excluding Trenton. Organic net sales growth, excluding Trenton, is expected to be flat to slightly down versus the prior-year period.
• Co reaffirms guidance for FY19, sees FY19 revs of $7.98-8.06 bln (+0.5-1.5%) vs. $8.02 bln S&P Capital IQ Consensus.

Earnings expected this week : Sept 24 - 28, 18 (wk 39)

Earnings confirmed to report this week

Monday (Sept 24)    

• Afternoon: ASNA DAC MARA HUSA ALN

Tuesday (Sept 25)

• Morning: FDS INFO  JBL MANU NEOG
• Afternoon: AIR  CTAS KBH NKE

Wednesday (Sept 26)

• Morning: ATU KMX OMN WOR
• Afternoon: BBBY FUL  CMTL SPRT SCX

Thursday (Sept 27)

• Morning: ACN ANGO  CAG CCL CMD MKC RAD SCHL
• Afternoon: CAMP PRGS

Friday (Sept 28)

• Morning: BB  MTN

=Pinnacle Foods (PF) to be acquired by Conagra Brands (CAG) for approximately $68.00/share

• Conagra Brands announced Wednesday that it will acquire Pinnacle Foods for $10.9 billion in cash and debt, forming a powerhouse company in the challenging frozen food category.

Chicago-based Conagra, known for brands like Marie Callender’s, Healthy Choice and Banquet in the frozen food aisles, has long had its sights set on New Jersey-based Pinnacle, whose portfolio includes Birds Eye and Hungry-Man frozen products.

Revamping and modernizing its frozen foods has been part of Conagra’s quest in recent years under CEO Sean Connolly. Based on last year’s figures, net sales of the combined company would have been $11 billion, according to the Conagra news release.

“The acquisition of Pinnacle Foods is an exciting next step for Conagra Brands. After three years of transformative work to create a pure-play, branded food company, we are well-positioned to accelerate the next wave of change,” said Sean Connolly, Conagra CEO, in the news release.

Under the terms of the transaction, Pinnacle Foods shareholders will receive $43.11 per share in cash and 0.6494 shares of Conagra Brands common stock for each share of Pinnacle Foods held. The implied price of $68.00 per Pinnacle Foods share is based on the volume-weighted average price of Conagra Brands' stock for the five days ended June 21, 2018. The purchase price reflects an adjusted EBITDA multiple of 15.8x, based on Pinnacle Foods' estimated fiscal year 2018 results excluding synergies, and 12.1x adjusted EBITDA including run-rate cost synergies.

• On a percentage basis, Conagra Brands expects the transaction to be low single-digit accretive to adjusted EPS in the fiscal year ended May 2020 and high single-digit accretive to adjusted EPS in the fiscal year ended May 2022.
• Conagra Brands expects to achieve approximately $215 million in annual run-rate cost synergies by the end of fiscal year 2022, with one-time cash costs to achieve the synergies estimated at approximately $355 million, inclusive of expected capital expenditures of approximately $150 million.

Conagra's transformation

Since becoming CEO of Conagra in 2015, Connolly has drastically transformed the company to focus on modernizing a portfolio of branded foods that includes names like Orville Redenbacher's popcorn and Hebrew National hot dogs. It has put money toward its frozen foods business, as millennials have rediscovered the cost and health benefits of eating frozen.

In the process, it has both shed and added to its portfolio. It sold its private-label unit for $2.7 billion in 2016 and later that year spun off its $6.9 billion potato business, Lamb Weston Holdings. It has bought up a number of smaller snack brands, including Angie's Artisan Treats, the parent of Boomchickapop, and Thanasi Foods, the parent of Duke's meat snacks.

Conagra's sales, excluding currency and acquisitions, grew 2 percent in the fourth quarter.

"After three years of transformative work to create a pure-play, branded food company, we are well-positioned to accelerate the next wave of change," Connolly said in a statement on Wednesday.

Pinnacle, meantime, has undergone its own changes. It acquired Boulder Brands, owner of gluten-free foods and snacks like Udi's and Glutino, for roughly $975 million in 2016.

=ConAgra (CAG) reported earnings on Thur 22 March 18 (b/o)

Conagra deal 'creates a powerhouse in the frozen-food aisle': In a nearly $11 billion deal, the Chicago company has agreed to acquire Pinnacle Foods, whose brands include Birds Eye, Duncan Hines, Hungry-Man and Log Cabin. 

ConAgra beats by $0.04, reports revs in-line; raises FY18 EPS above consensus 

• Reports Q3 (Feb) earnings of $0.61 per share, $0.04 better than the Capital IQ Consensus of $0.57; revenues rose 0.7% year/year to $1.99 bln vs the $2 bln Capital IQ Consensus.
• Co issues upside guidance for FY18, sees EPS of $2.03-2.05 vs. $2.01 Capital IQ Consensus Estimate, up from prior guidance of high end of $1.84-1.89
  • Co also guides for reported net sales growth approximately 150 basis points higher than the organic net sales growth rate due to the impacts of acquisitions and foreign exchange.
  • Co Reaffirms
    • Organic net sales growth near the high end of the range of (2)% to flat.
    • Adjusted operating margin near the low end of the range of 15.9% to 16.3%.

=ConAgra (CAG) reported earnings on Thur 21 Dec 2017 (b/o)

ConAgra beats by $0.03, beats on revs; guides FY18 at high end of prior range 

• Reports Q2 (Nov) earnings of $0.55 per share, $0.03 better than the Capital IQ Consensus of $0.52; revenues rose 4.1% year/year to $2.17 bln vs the $2.07 bln Capital IQ Consensus; organic net sales grew 2.3% in the quarter with growth in each operating segment. The Company estimates that the recent hurricanes increased its net sales and organic net sales growth rates by ~220 basis points. The Refrigerated & Frozen segment continued its growth momentum in the second quarter with 4% volume growth.
• Co issues guidancefor FY18, sees EPS at high end of $1.84-1.89 range vs. $1.88 Capital IQ Consensus Estimate; sees FY18 revs 100-150 bps better than organic growth, which is expected ro be at the high end of flat to down 2%; so co sees FY18 rev +0-1.5% to ~$7.83-7.94 bln vs. $7.74 bln Capital IQ Consensus (including acquisitions and FX). Adjusted operating margin near the low end of the range of 15.9% to 16.3%. 

Lamb Weston (LW) reported earnings Tue 10 Jan 2017 (b/o)

   

• Lamb Weston (LW) was spun-off by Conagra Foods (CAG) as an independent public company on November 10, 2016.
• Lamb Weston supplies frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers, with nearly $3 billion in annual sales.

** charts after earnings **

Lamb Weston beats by $0.07, beats on revs; guides FY17 EPS above consensus, raises sales outlook :

• Reports Q2 (Nov) earnings of $0.63 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.56; revenues rose 6.8% year/year to $790.7 mln vs the $772.1 mln two analyst estimate.
• Volume increased 4 percentage points as productivity programs and strong manufacturing plant performance stretched available capacity, allowing the Company to meet demand growth in both North America and international markets. Price/mix increased 3 percentage points due to pricing actions and favorable product and customer mix.
• Co issues upside guidance for FY17, sees EPS of $2.20-2.28, excluding non-recurring items, vs. $2.11 Capital IQ Consensus Estimate; sees net sales up mid-single digits vs. prior guidance for up low single digits. Co expects Adjusted EBITDA including unconsolidated joint ventures to grow at a mid-teens rate, up from a previous estimate of a high single digit increase, reflecting solid sales growth and savings from supply chain efficiencies, partially offset by lower contribution from equity method investment earnings. Potato costs are expected to remain essentially flat.

=ConAgra (CAG) reported earnings on Thur 29 Sept 2016 (b/o)

ConAgra beats by $0.13, misses on revs; remains on-track to execute the spin-off of the Lamb Weston business this fall  :

• Reports Q1 (Aug) earnings of $0.61 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus of $0.48; revenues fell 4.6% year/year to $2.67 bln vs the $2.73 bln Capital IQ Consensus. Net sales decreased 5% as a result of volume declines associated with the Company's actions to build a higher quality revenue base, partially offset by Lamb Weston's continued growth and increased price/mix. Divestitures and the impact of foreign exchange reduced sales ~2 % points.
  • Gross profit (net sales less cost of goods sold) as a% of net sales expanded ~200 basis points behind pricing and trade spending discipline, mix improvement, and supply chain efficiencies.
• The Company expects this to be the last earnings release as ConAgra Foods.
  • The Company remains on-track to execute the spin-off of the Lamb Weston business this fall. The spin-off will result in two independent, publicly-traded, pure play companies, Conagra Brands and Lamb Weston.
  • Conagra Brands and Lamb Weston have announced their intention to host investor events on October 18, 2016 and October 13, 2016, respectively. Each company expects to share more details, including fiscal year 2017 and longer-term outlooks, growth initiatives, efficiency programs, and capital allocation priorities, at these events.

Conagra (CAG) earnings pre-market Thur June 21,2012

 ** weekly **

** after earnings **

up 3%

ConAgra Foods Inc. (CAG) said on Thursday that its fiscal fourth-quarter loss totaled $86.2 million, or 21 cents a share, compared to a profit of $250.1 million, or 61 cents a share a year ago. Excluding pension related charges, the company reported operating income of 51 cents a share in the fiscal fourth quarter. Net sales for the fourth quarter were $3.41 billion, compared to $3.21 billion a year ago. Analysts polled by FactSet Research had expected the company to earn 50 cents a share on net sales of $3.40 billion.

** weekly **