MW Conagra's stock falls as supply chain issues lead to an earnings miss

Conagra Brands Inc. $(CAG)$ shares are down 2% in premarket trades after fiscal third-quarter earnings missed Wall Street's estimates as the food giant tackles a supply issue.

Third-quarter net income was $145.1 million, or 30 cents a share, down from $308.6 million, or 64 cents a share, in the prior year's quarter. Adjusted earnings were 51 cents a share. Analysts surveyed by FactSet were looking for earnings of 52 cents a share. That marked the second-straight quarter that adjusted profit missed expectations, and the third time in the past four quarters.

Revenue was $2.841 billion, down from $3.033 billion in the prior year's quarter, roughly in line with the FactSet consensus estimate of $2.896 billion.

"While shipments lagged consumption largely due to the discrete supply constraints we announced in February, we are making solid progress in restoring inventory and improving customer service levels," said Conagra Brands CEO Sean Connolly, in a statement.

Earlier this year Conagra cited a production problem at a chicken-processing plant that impacted the company's expenses, requiring it to buy meat from a third-party supplier and make upgrades at the facility.

The company also maintained its fiscal 2025 guidance Thursday, and expects an organic net sales decline of approximately 2% compared with the prior year. Conagra also expects fiscal 2025 earnings of approximately $2.35 a share on an adjusted basis.

(This is a developing news story with updates to come.)

-James Rogers

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April 03, 2025 08:07 ET (12:07 GMT)

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