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Thursday, June 27, 2019

-=Conagra (CAG) reported earnings on Thur 27 June 19 (b/o)

Conagra misses by $0.05, misses on revs; slightly lowers FY20 EPS guidance; sees FY20 revs below consensus following Gelit divestiture
  • Reports Q4 (May) earnings of $0.36 per share, $0.05 worse than the S&P Capital IQ Consensus of $0.41; revenues rose 32.9% year/year to $2.61 bln vs the $2.66 bln S&P Capital IQ Consensus.
  • Adjusted EBITDA, which includes equity method investment earnings and pension and postretirement non-service income, increased 22.2% to $458 mln in the quarter, driven by the addition of Pinnacle's operating profit.
  • Co issues guidance for FY20, sees EPS of $2.08-2.18 from $2.10-2.20 vs. $2.16 S&P Capital IQ Consensus; sees FY20 revs of +13.5%-14.0% to $10.83-10.87 bln vs. $10.88 bln S&P Capital IQ Consensus. Co FY20 sees organic net sales growth of +1.0-1.5% (prior was +1).
  • The Company is providing an update to its fiscal 2022 financial algorithm to adjust for the divestiture of the Gelit business. Excluding the adjustment for Gelit, the algorithm has not changed from that previously provided at the Company's Investor Day in April 2019. Organic net sales growth 3-year CAGR ending fiscal 2022 of 1% to 2%. Adjusted operating margin in fiscal 2022 of 18% to 19%. Adjusted EPS in fiscal 2022 of $2.68 to $2.78. This metric has been adjusted to reflect the divestiture of Gelit.

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