Conagra Brands Q4 Earnings Coming Up: What Investors Need to Know

Conagra Brands, Inc. CAG is likely to register a decline in its top and bottom lines when it reports fourth-quarter fiscal 2025 earnings on July 10. The Zacks Consensus Estimate for quarterly earnings has moved down by a penny over the last seven days to 59 cents per share, indicating a decrease of 3.3% from the year-ago quarter’s reported figure. The consensus mark for fiscal 2025 earnings is pegged at $2.33 per share, suggesting a decline of 12.7% from the prior year’s reported figure. CAG has a trailing four-quarter negative earnings surprise of almost -0.1%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

The Zacks Consensus Estimate for Conagra Brands’ quarterly revenues is pegged at $2.9 billion, which indicates a 1.8% decrease from the year-ago quarter. The consensus mark for fiscal 2025’s top line is pegged at $11.7 billion, which indicates a decline of 3% from the year-ago level.

Conagra Brands Price and EPS Surprise

Conagra Brands price-eps-surprise | Conagra Brands Quote

Things to Know About CAG’s Q4 Earnings

Conagra Brands continues to grapple with persistent cost inflation, which is weighing on its margin performance. Elevated input and protein costs have been major headwinds. Although some margin improvement is expected in the fiscal fourth quarter, it is unlikely to fully offset the cost pressures. Our model suggests adjusted gross margin contraction of 170 basis points (bps) year over year in fiscal 2025. Additionally, SG&A expenses — including advertising and promotional spending — have been on the rise, further squeezing profitability.

The company’s Foodservice segment remains under pressure, mirroring broader industry headwinds. Weaker commercial traffic, due to macroeconomic uncertainty and a sluggish rebound in out-of-home dining, continues to impact performance. Moreover, Conagra Brands’ international exposure makes it vulnerable to currency volatility, which adds another layer of pressure.

For fiscal 2025, the company expects a 2% decline in organic net sales growth. The adjusted operating margin is projected at 14.4%, while adjusted earnings are forecasted at $2.35 per share, down from $2.67 in fiscal 2024. CAG’s guidance reflects ongoing challenges, including supply-chain interruptions and foreign exchange pressures.

Earnings Whispers for CAG Stock

Our proven model does not predict an earnings beat for Conagra Brands this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Conagra Brands currently carries a Zacks Rank #5 (Strong Sell) and has an Earnings ESP of -1.37%.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

The Estee Lauder Companies Inc. (EL) currently has an Earnings ESP of +66.84% and a Zacks Rank of 1. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings per share (EPS) is pegged at 5 cents, which implies a 92.2% decrease year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for The Estee Lauder Companies’ quarterly revenues is pegged at $3.38 billion, which indicates a 12.7% decrease from the figure reported in the prior-year quarter. EL delivered a trailing four-quarter earnings surprise of 107.4%, on average.

The Hershey Company HSY currently has an Earnings ESP of +11.13% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports second-quarter fiscal 2025 results. The consensus mark for Hershey’s quarterly revenues is pegged at $2.5 billion, which indicates an increase of 21.4% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Hershey’s quarterly EPS is pegged at $1.01, indicating a 20.5% decline from the year-ago period. HSY delivered a trailing four-quarter earnings surprise of 0.6%, on average.

Mondelez International, Inc. MDLZ currently has an Earnings ESP of +4.04% and a Zacks Rank #3. The company is likely to register top-line growth when it reports second-quarter 2025 results. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.9 billion, which indicates an increase of 6.1% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Mondelez’s quarterly EPS is pegged at 67 cents, indicating a 22.1% decline from the year-ago period. MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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