Shares of Conagra Manufacturers, Inc. (NYSE: CAG) rose over 4% on Wednesday after the corporate delivered better-than-expected outcomes for the primary quarter of 2026. Though income and earnings declined versus the earlier yr, they surpassed market expectations. The corporate reaffirmed its outlook for the complete yr of 2026 even because it anticipates the working setting to stay difficult in the course of the interval.
Outcomes beat estimates
In Q1 2026, Conagra’s web gross sales decreased 5.8% year-over-year to $2.63 billion, however surpassed projections of $2.62 billion. Natural gross sales dipped 0.6%, pushed by a 1.2% drop in quantity. On a GAAP foundation, earnings per share decreased almost 65% to $0.34 versus the earlier yr. EPS, on an adjusted foundation, declined 26% YoY to $0.39 however got here forward of the consensus goal of $0.33.
Phase gross sales declines
Conagra noticed gross sales decline throughout all its segments on a reported foundation in Q1. Gross sales within the Grocery & Snacks phase decreased nearly 9%, reflecting a 1% drop in natural gross sales pushed by a 1.6% lower in quantity. Gross sales from the Refrigerated & Frozen phase dipped almost 1%, however natural gross sales have been up 0.2% and quantity was up 0.5%.
Worldwide phase gross sales fell 18%, with a 3.5% lower in natural gross sales and a 5.2% drop in quantity. Foodservice phase gross sales dipped 0.8%, with a 0.2% rise in natural gross sales and a 3.6% lower in quantity.
Through the quarter, CAG gained share in classes akin to frozen greens, frozen meals, and frozen ready hen. Within the snacks class, the corporate noticed volumes develop in strategic protein snacks, with meat snacks up 4% and seeds up 2%. Then again, salty snacks and candy treats noticed declines. Baking mixes volumes have been damage by inflation-driven pricing for cocoa. Within the staples portfolio, the Reddi-wip-proprietor is seeing quantity features in sure classes however the development of customers searching for worth has impacted this area.
Reaffirmed outlook
Trying forward, Conagra anticipates a troublesome setting with continued headwinds from inflation and weak shopper sentiment. The corporate forecasts impacts from inflation and tariffs to be increased than beforehand anticipated. Client sentiment stays muted with clients persevering with to hunt worth of their purchases.
CAG has reaffirmed its outlook for fiscal yr 2026 and continues to anticipate natural gross sales progress of down 1% to up 1%. Adjusted EPS is predicted to vary between $1.70-1.85.
