Conagra Q1 Adjusted EPS Beats Estimates at 41 Cents; Shares Slip on Weak Volume Outlook

Conagra Brands (CAG) reported first-quarter adjusted earnings of 41 cents per diluted share on September 30, topping analyst estimates of 28 cents. Net sales fell 1.4% year-over-year to $2.60 billion, narrowly beating the $2.59 billion consensus. Organic net sales declined 1.1% on a 2.1% volume drop, partly offset by a 1% pricing and product-mix contribution. Adjusted gross profit fell 3.9% to $619 million as cost inflation and lower volumes outweighed productivity gains and about $4 million in tariff refunds. Adjusted EBITDA rose 2.4% to $451 million. Foodservice was the bright spot, with net sales up 3.2% to $273 million. Grocery and Snacks fell 2.6% to $1.1 billion; Refrigerated and Frozen slid 2.1% to $1.1 billion; International gained 2.7% to $218 million. Conagra maintained its fiscal 2027 outlook of organic net sales down 3% to down 1% and adjusted EPS of $1.40 to $1.50. CFO Dave Marberger said mid-single-digit volume declines are still expected for the year. Net debt stood at $7.4 billion, down $193 million, with net leverage of 3.99 times. Shares fell about 4.5% in premarket trading.