Conagra Brands Profit Jumps on Higher Prices

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published April 05, 2023
Conagra Foods

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Key Takeaways

  • Shares of Conagra Brands (CAG) rose as the packaged food company reported better-than-expected quarterly results and boosted its full-year outlook.
  • Conagra posted fiscal 2023 third quarter earnings per share (EPS) of $0.71, 58% more than a year ago. Revenue rose 5.9% to $3.09 billion.
  • Conagra Brands shares gained 1.8% today, and are down 1% for the year so far.

Shares of Conagra Brands (CAG) rose as the packaged food company reported better-than-expected quarterly results and boosted its full-year outlook.

The maker of Slim Jim meat snacks and Marie Callender's frozen meals posted fiscal 2023 third quarter earnings per share (EPS) of $0.71, 58% more than a year ago. Revenue rose 5.9% to $3.09 billion. Both exceeded forecasts.

CEO Sean Connolly credited the strong gains to price increases, which helped offset greater-than-anticipated impacts from supply chain issues.

Conagra said its price/mix improved by 15.1%, lifted by its inflation-driven pricing actions. However, volumes fell 9%, primarily because of those higher prices and the supply chain problems, which included manufacturing disruptions. 

Boosting Earnings Guidance

The company is now predicting 2023 EPS of $2.70 to $2.75, up from the previous $2.60 to $2.70, and above analysts’ estimates. It sees organic net sales growth of 7% to 7.5% compared to fiscal 2022, and operating margin between 15.5% and 15.6%.

Conagra Brands shares gained 1.8% today, and are down 1% for the year so far.

Conagra Brands Inc

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  1. Conagra Brands. "Conagra Brands Reports Third Quarter Results."

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