USA- Conagra brands, a renowned meat snack and CPG company, is expected to post a year-over-year decline in earnings and revenue for the quarter ending August 2024.
While market consensus provides insight into the company’s expected performance, the actual figures revealed in the earnings report, due October 2, could significantly influence the stock’s short-term movement.
If Conagra’s earnings and revenue surpass projections, the stock may see an uptick. However, if the results fall short, a downturn is likely.
How company executives address market conditions during the earnings call will play a key role in shaping the stock’s future trajectory.
Currently, the company is forecast to report quarterly earnings of US$0.59 per share, which would represent a 10.6% decline from the same quarter in the previous year.
Revenue is projected to be US$2.84 billion, marking a 2.3% year-over-year drop.
Notably, the earnings per share estimate has remained stable over the past 30 days, suggesting that analysts covering the stock have not revised their outlook recently.
Amid these projections, Conagra has been making strategic moves.
The company recently expanded its meat snack offerings through the acquisition of Sweetwood Smoke & Co., a Colorado-based company founded by former athlete Ryan Wood in 2010.
Sweetwood Smoke is known for its Fatty brand of meat sticks, which are made from grass-fed beef and antibiotic-free pork, smoked over hickory wood, and available in flavors such as pepperoni, teriyaki, and buffalo chicken.
In addition to its expansion efforts, Conagra Brands also took steps to exit certain markets.
Earlier this year, the company announced it would sell its 51.8% controlling stake in India’s Agro Tech Foods (ATFL).
The sale saw local investment firms Convergent Finance and Samara Capital acquire the majority shares.
According to ATFL’s stock exchange filing, the buyers will pay a total of US$78 million for Conagra’s share and an additional US$44 million for a 26% stake held by public investors.
This deal is expected to close by the end of 2024.
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