Shares of consumer-packaged foods provider Conagra Brands (NYSE:CAG) are trending lower today after the company reported first-quarter revenue of $2.9 billion, missing estimates by $60 million. However, EPS of $0.66 came in ahead of expectations by $0.06.
Despite facing macroeconomic headwinds, the company’s operating margin improved by 1,757 basis points to 16.8%. Nonetheless, slower consumption and shifts in consumer behavior resulted in organic net sales declining by 0.3%. Further, gains in the Grocery & Snacks and International segments were partially offset by declines in the company’s Refrigerated & Frozen segment.
For the full Fiscal year 2024, Conagra expects organic net sales to grow by about 1%, with an adjusted operating margin anticipated between 16% and 16.5%. Adjusted EPS for the year is expected to land in the range of $2.70 and $2.75.
Is CAG a Good Stock to Buy?
Overall, the Street has a consensus price target of $35.45 on Conagra Brands, along with a Hold consensus rating. This points to a 33.6% potential upside in the stock.
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