Free Research Report as Conagra's Q4 Adjusted EPS Surged 35.1%; Beat Estimates

LONDON, UK / ACCESSWIRE / July 10, 2018 / If you want access to our free earnings report on Conagra Brands, Inc. (NYSE: CAG) ("Conagra"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CAG. The Company posted its financial results on June 27, 2018, for the fourth quarter of the fiscal year 2018 (Q4 FY18) and for the full fiscal year 2018 (FY18). The Company's diluted earnings per share (EPS) from continuing operations surged 35.1% y-o-y; topping market expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Conagra Brands most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=CAG

Earnings Highlights and Summary

For the three months ended May 27, 2018, Conagra reported net sales of $1.97 billion, which came in 5.6% above the $1.86 billion recorded at the end of Q4 FY17. The Company's net sales numbers for the reported quarter outperformed market expectations of $1.94 billion.

The packaged food maker reported an income from continuing operations of $70.6 million, or $0.18 per diluted share, in Q4 FY18 compared to $153.6 million, or $0.36 per diluted share, in Q4 FY17. The Company's adjusted EPS from continuing operations came in at $0.50 per diluted share compared to $0.37 per diluted share in the prior year's same period. Meanwhile, Wall Street had expected the Company to report adjusted EPS from continuing operations of $0.43 per diluted share.

For the full fiscal year 2018, Conagra's net sales stood at $7.94 billion versus $7.83 billion a year ago. The Company's income from continuing operations surged to $797.5 million, or $1.97 per diluted share, during FY18 from $546.0 million, or $1.26 per diluted share, in FY17. Furthermore, the Company's adjusted diluted EPS from continuing operations rose 21.3% to $2.11 during FY18 from $1.74 in FY17.

Operating Metrics

During Q4 FY18, the Chicago, Illinois-based Company's adjusted gross profit margin was $573.3 million, or 29.2% of net sales, compared to $540.5 million, or 29.0% of net sales, in Q4 FY17. During the reported quarter, Conagra spent $218.3 million on adjusted selling, general, and administrative expenses (SG&A), much below $211.1 million in Q4 FY17. Furthermore, the Company's total segment's adjusted operating profit stood at $295.5 million, or 15.0% of net sales, in Q4 FY18 compared to $253.9 million, or 13.6% of net sales, in Q4 FY17.

Segment Performance

During Q4 FY18, Conagra's Grocery & Snacks segment's net sales came in at $802.5 million, up 7.1% from $749.4 million in the year ago same period. The segment's adjusted operating profit margin also increased to $181.1 million, or 22.6% of segment sales, in Q4 FY18 from $159.3 million, or 21.3% of segment sales, in Q4 FY17.

Conagra's Refrigerated & Frozen segment's net sales were $690.7 million in Q4 FY18, which were 7.9% higher than $640.2 million in Q4 FY17. Moreover, the segment’s adjusted operating profit improved to $122.9 million, or 17.8% of segment sales, in Q4 FY18 from $107.0 million, or 16.7% of segment sales, in Q4 FY17.

Conagra's International segment contributed $208.9 million to the Company's total sales in Q4 FY18 compared to $204.7 million in Q4 FY17. Moreover, the segment's adjusted operating profit came in at $19.1 million, or 9.1% of segment sales, in Q4 FY18, up from $17.9 million, or 8.7% of segment sales, in Q4 FY17.

The Company's Foodservice segment reported sales of $264.1 million in Q4 FY18, falling 1.2% from $267.4 million in Q4 FY17. For the reported quarter, the segment's operating profit was $27.2 million, or 10.3% of segment sales, compared to $23.7 million, or 8.9% of segment sales, in Q4 FY17.

Cash Flow and Balance Sheet

For the year ended May 27, 2018, Conagra generated net cash from operations from continuing operations of $919.7 million compared to $1.14 billion in the year ago. The Company had a cash and cash equivalents balance of $128.0 million as on May 27, 2018, compared to $251.4 million at the close of books on May 28, 2017. Furthermore, the Company ended the quarter with a senior long-term debt of $3.04 billion compared to $2.57 billion as on May 28, 2017.

Share Repurchase

During Q4 FY18, the Company repurchased 3 million shares of its common stock for $107 million. Furthermore, Conagra's Board of Directors has authorized an additional $1 billion share repurchase program and currently has share repurchase authorization of approximately $1.4 billion with no expiration date.

Acquisition

The Company entered into a definitive agreement to acquire all the outstanding shares of Pinnacle Foods (NYSE:PF) for $43.11 in cash and 0.6494 shares of Conagra Brands common stock.

Outlook

In its guidance for the full year FY19, the Company forecasts net sales growth to be in the range of 0.5% to 1.5%. The Company's adjusted operating margin is expected to be in the band of 15.0% to 15.3% for FY19.

Stock Performance Snapshot

July 09, 2018 - At Monday's closing bell, Conagra Brands' stock advanced 1.99%, ending the trading session at $36.44.

Volume traded for the day: 7.08 million shares, which was above the 3-month average volume of 3.80 million shares.

Stock performance in the past twelve-month period - up 9.04%

After yesterday's close, Conagra Brands' market cap was at $14.54 billion.

Price to Earnings (P/E) ratio was at 26.58.

The stock has a dividend yield of 2.33%.

The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry. This sector was up 0.5% at the end of the session.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA^® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

SOURCE: Active-Investors