![Conagra Brands stock drops as the inflationary outlook leads to lower expectations 3 Trading signals about upcoming cryptocurrency pumps on the Binance exchange based on artificial intelligence forecasts Conagra Marie Callender's, Healthy Choice and Reddi Wip brand products](/wp-content/uploads/2024/12/789606e5987037c21954f1514ed38f17.jpg)
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The Key Takeaways
- Conagra Brands stock fell on Thursday as the food giant cut its profit expectations.
- CEO Sean Connolly cited a "challenging consumer environment," and said inflation will likely negatively affect Conagra's second-half results.
- The company's second-quarter sales and adjusted earnings topped analysts' estimates.
Conagra Brands’ (CAG), shares dropped Thursday after it lowered the company’s profit forecast, citing an a “challenging consumer environment.”
Sean Connolly, CEO of the company, said that inflation was higher than expected. “unfavorable” Foreign exchange rates will negatively impact earnings during the second half fiscal year.
Conagra’s updated full-year forecast reflects these headwinds. Conagra expects its organic net sales range will fall between the previous midpoints of flat or down 1.5%, and has lowered its range for adjusted earnings (EPS), from $2.60 – $2.65.
Conagra’s recent quarterly reports have noted the difficult environment, as well as consumers who are hesitant. To compensate for this, Conagra also sought to reduce costs.
Visible Alpha estimates that the owner of many brands, including Duncan Hines Slim Jim and Reddi Wip, reported a second quarter revenue of $3.2 Billion, down 0.4% from last year but still above what analysts expected at $3.15 Billion. Conagra’s earnings fell short of expectations, with a decrease from last year. Analysts had predicted a growth in revenue to $317.7 millions.
Conagra, the food manufacturer, reported a net income of $337.9 million after adjusting for restructuring costs and other one-time expenses. This is higher than the projected $323.1 millions.
Conagra’s shares fell by about 2% on Thursday and are down about 6% for the year.
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