Shares of Conagra Manufacturers, Inc. (NYSE: CAG) rose 1% on Friday. The inventory has dropped 7% up to now three months. The branded meals firm is slated to report its earnings outcomes for the second quarter of 2026 on Friday, December 19, earlier than the market opens. Right here’s a take a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $2.99 billion for Conagra within the second quarter of 2026, which signifies a decline of 6% from the corresponding interval a 12 months in the past. Within the first quarter of 2026, web gross sales decreased 5.8% year-over-year to $2.63 billion.
Earnings
The consensus estimate for earnings per share in Q2 2026 is $0.44, which suggests a lower of 37% from the prior-year quarter. In Q1 2026, adjusted EPS fell 26.4% YoY to $0.39.
Factors to notice
Conagra continues to face a difficult working setting with inflationary pressures, tariffs and muted shopper sentiment. The corporate expects greater impacts from inflation and tariffs than beforehand anticipated, whereas shoppers proceed to hunt worth towards an inflationary backdrop.
On its final earnings name, CAG forecast natural gross sales to say no low-single-digits within the second quarter, pushed by consumption developments and a shift in commerce expense. In Q1, natural gross sales dipped 0.6%, pushed by a 0.6% constructive influence from value/combine and a 1.2% drop in quantity.
Final quarter Conagra noticed declines in gross sales and quantity throughout its segments. The corporate continues to spend money on its manufacturers to drive quantity restoration in a tough shopper setting. In Q1, it noticed good points in classes corresponding to frozen greens and meals, in addition to strategic protein snacks, like meat snacks and seeds, however salty snacks and candy treats witnessed declines.
Increased prices for animal proteins corresponding to beef, pork, and turkey are anticipated to stay a headwind. As inflation persists, value-seeking conduct from shoppers might be anticipated to strain class development. CAG managed to resolve many of the provide chain points it confronted up to now quarters and it continues to spend money on provide chain resiliency. The corporate has been implementing focused pricing and taking measures to enhance its productiveness and these could also be mirrored within the Q2 efficiency.
