Factors Likely to Have Influenced Earnings Results Conagra Brands (NYSE:CAG)


Earnings results for Conagra Brands (NYSE:CAG)

ConAgra Brands, Inc. is expected* to report earnings on 10/01/2020 before market open. The report will be for the fiscal Quarter ending Aug 2020. According to Zacks Investment Research, based on 7 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.57. The reported EPS for the same quarter last year was $0.43.

Conagra Brands last released its quarterly earnings results on June 30th, 2020. The reported $0.75 EPS for the quarter, topping analysts’ consensus estimates of $0.66 by $0.09. The company earned $3.29 billion during the quarter, compared to analysts’ expectations of $3.13 billion. Its quarterly revenue was up 25.8% compared to the same quarter last year. Conagra Brands has generated $2.28 earnings per share over the last year and currently has a price-to-earnings ratio of 20.8. Conagra Brands has confirmed that its next quarterly earnings report will be published on Thursday, October 1st, 2020.

Analyst Opinion on Conagra Brands (NYSE:CAG)

14 Wall Street analysts have issued ratings and price targets for Conagra Brands in the last 12 months. Their average twelve-month price target is $35.64, predicting that the stock has a possible downside of 0.19%. The high price target for CAG is $41.00 and the low price target for CAG is $29.00. There are currently 8 hold ratings, 5 buy ratings and 1 strong buy rating for the stock, resulting in a consensus rating of “Buy.”

Conagra Brands has received a consensus rating of Buy. The company’s average rating score is 2.50, and is based on 5 buy ratings, 8 hold ratings, and no sell ratings. According to analysts’ consensus price target of $35.64, Conagra Brands has a forecasted downside of 0.2% from its current price of $35.71. Conagra Brands has only been the subject of 1 research reports in the past 90 days.

Dividend Strength: Conagra Brands (NYSE:CAG)

Conagra Brands pays a meaningful dividend of 2.40%, higher than the bottom 25% of all stocks that pay dividends. Conagra Brands has only been increasing its dividend for 1 years. The dividend payout ratio of Conagra Brands is 37.28%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Conagra Brands will have a dividend payout ratio of 32.57% next year. This indicates that Conagra Brands will be able to sustain or increase its dividend.

Insiders buying/selling: Conagra Brands (NYSE:CAG)

In the past three months, Conagra Brands insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $10,323,940.00 in company stock. Only 2.60% of the stock of Conagra Brands is held by insiders. 81.14% of the stock of Conagra Brands is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Conagra Brands (NYSE:CAG

Earnings for Conagra Brands are expected to grow by 9.21% in the coming year, from $2.39 to $2.61 per share. The P/E ratio of Conagra Brands is 20.76, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 18.69. The P/E ratio of Conagra Brands is 20.76, which means that it is trading at a less expensive P/E ratio than the Consumer Staples sector average P/E ratio of about 49.27. Conagra Brands has a PEG Ratio of 2.10. PEG Ratios above 1 indicate that a company could be overvalued. Conagra Brands has a P/B Ratio of 2.19. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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