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The company reported EPS of $0.62 on revenue of $ 2.97 billion, which compared to the consensus for earnings of $0.60 per share on revenue of $3.01B. Organic net sales rose just 2.2%, well below the expected 3.9% increase.
“Our business delivered strong results in fiscal 2023, as we successfully delivered on our priorities to execute inflation-justified pricing, drive gross margin recovery, and reduce net leverage while investing to maintain the strength of our brands,” said Sean Connolly, president and chief executive officer of Conagra Brands.
The company sees FY24 EPS in the range of $2.70-2.75, in line with the consensus of $2.74. It also expects organic sales growth of 1%.
Stifel analysts expect “a modest negative reaction to the guidance.”
“We continue with our Hold rating and $43 target price reflecting a 10.5x EV/EBITDA multiple on our CY23 estimate, placing the shares at a 15% discount to its domestic large-cap packaged foods peers which we believe is appropriate as the company contends with softening elasticity,” they said in a note.
