Conagra Brands, Inc. (NYSE:CAG) Quarterly Earnings Preview

• Conagra Brands, Inc. (NYSE:CAG) is expected to report a decline in both revenue and earnings for the third quarter of fiscal 2025, with an anticipated EPS of $0.52 and revenue of $2.89 billion.
• The company faces operational challenges, including supply chain disruptions and cost inflation, which are likely to impact its profitability.
• Conagra's financial metrics reveal a P/E ratio of approximately 25.81, a debt-to-equity ratio of about 0.96, and potential liquidity challenges with a current ratio of approximately 0.70.

Conagra Brands, Inc. (NYSE:CAG) is a leading packaged foods company known for its wide range of products, including frozen, refrigerated, and shelf-stable foods. The company operates in a competitive market alongside other major players like General Mills and Kraft Heinz. Conagra's diverse portfolio includes well-known brands such as Healthy Choice, Marie Callender's, and Slim Jim.

On April 3, 2025, Conagra is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $0.52 and projected revenue of approximately $2.9 billion. However, the Zacks Consensus Estimate indicates a decline in both revenue and earnings for the third quarter of fiscal 2025. Revenue is expected to decrease by 4.7% from the same quarter last year, reaching $2.89 billion.

The anticipated EPS of $0.52 represents a significant year-over-year decline of 24.6%. Over the past month, the consensus EPS estimate has been revised downward by 2.1%, reflecting analysts' reassessment of their initial projections. These revisions are important as they can influence investor behavior and impact the stock's short-term price performance.

Conagra has faced several operational challenges, including supply chain disruptions and foreign exchange impacts, which are likely to affect its performance. The company has also been grappling with cost inflation, particularly in protein costs and input inflation, which have been detrimental to its profitability. The Foodservice unit has been under pressure due to these rising costs.

Conagra's financial metrics provide insight into its market valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 25.81 and a price-to-sales ratio of about 1.06. The enterprise value to sales ratio is around 1.77, while the enterprise value to operating cash flow ratio is approximately 11.03. The debt-to-equity ratio stands at about 0.96, indicating a balanced approach to leveraging debt versus equity. However, the current ratio of approximately 0.70 may suggest potential liquidity challenges in meeting short-term obligations.