Shares of ConAgra Brands (NYSE:CAG) gained over 1.8% in Wednesday’s trading session after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at $0.76, which beat analysts’ consensus estimate of $0.64 per share. Sales increased by 6.2% year-over-year, with revenue hitting $3.09 billion. This beat analysts’ expectations of $3.08 billion.
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ConAgra revealed that its retail sales were up 5.5% against the third quarter of last year and up 24.7% against levels of three years ago. A combination of difficulties in the supply chain and some significant pockets of strength, thanks to the rise of the Omicron variant of COVID-19, made exact comparisons difficult. CEO Sean Connolly referred to this as “noise” in the comparisons.
ConAgra also modified its guidance for Fiscal Year 2023. It now expects adjusted earnings per share figures between $2.70 and $2.75, as well as an operating margin between 15.5% and 15.6%. It also looks for capital expenditures of $370 million and interest expenses of around $410 million.
Overall, Wall Street has a consensus price target of $41.31 on ConAgra Brands, implying 7.94% upside potential, as indicated by the graphic above.
