Conagra Brands Raises 2020 Profit Outlook as Consumers Stock Up Groceries
Conagra Brands Inc (CAG) raised its profit forecast for 2020 as the coronavirus pandemic has pushed consumer demand for its groceries and snacks through the roof.
Conagra said it expects to exceed its full-year guidance for company sales and profit metrics, assuming there will be no supply chain disruptions and businesses continue to operate.
“While we are still early in our fourth quarter, we have seen significantly elevated demand for our retail products as consumers have started filling their pantries for more at-home eating,” Conagra Brands President and Chief Executive Officer Sean Connolly said in a statement. “On a quarter-to-date basis, shipments and consumption in our domestic retail business have increased approximately 50%, which have more than offset the impact of worsening trends in our foodservice business.”
Wall Street analysts have a Moderate Buy rating on the stock based on 5 Buy and 6 Hold ratings. The $32.60 average price target forecasts a moderate 10% upside potential for Conagra’s shares in the next 12 months. (See Conagra Brands stock analysis on TipRanks)
Conagra Brands also reported third-quarter results came in-line with the company’s expectations. Net sales fell 5.6% to $2.6 billion in the quarter. Net earnings attributable to Conagra Brands fell to $204 million, or 42 cents per share, in the quarter ended Feb. 23, from $242 million, or 50 cents per share, a year earlier. (See Conagra Brands earnings on TipRanks)
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