WASHINGTON (dpa-AFX) - Conagra Brands, Inc. (CAG) said, for fiscal 2025, the company now expects adjusted EPS in a range of $2.45 to $2.50, revised from prior guidance range of $2.60 to $2.65. Adjusted operating margin is projected at approximately 14.8%, lower from prior guidance range of 15.6% to 15.8%. Organic net sales are anticipated near the midpoint of a decline of 1.5% to flat. The company noted that two factors will pressure its second half: higher than expected inflation; and unfavorable FX.
Second quarter net income attributable to Conagra Brands was $284.5 million compared to $286.2 million, a year ago. Reported earnings per share was $0.59, a 1.7% decrease. Adjusted EPS was $0.70, a 1.4% decrease. Analysts on average had expected the company to earn $0.67 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items. In the quarter, net sales decreased 0.4% to $3.2 billion. Organic net sales increased 0.3%, for the quarter. Analysts on average had estimated $3.15 billion in revenue.
Sean Connolly, CEO of Conagra Brands, said: 'Our business returned to growth in the second quarter despite a continued challenging consumer environment as our investments paid off, driving strong market share performance. While momentum remains strong, we expect the business to be impacted by two headwinds in the back half including higher than expected inflation and unfavorable foreign exchange rates, leading us to update our fiscal 2025 outlook.'
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