Market Overview

Earnings Preview for Conagra Brands

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Conagra Brands (NYSE:CAG) unveils its next round of earnings this Thursday, January 07. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Conagra Brands modeled for quarterly EPS of $0.73 on revenue of $2.99 billion. Conagra Brands EPS in the same period a year ago totaled $0.63. Sales were $2.82 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 15.87%. Sales would be have grown 5.99% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019
EPS Estimate 0.57 0.66 0.48 0.57
EPS Actual 0.70 0.75 0.47 0.63
Revenue Estimate 2.61 B 3.11 B 2.58 B 2.80 B
Revenue Actual 2.68 B 3.29 B 2.56 B 2.82 B

Stock Performance

Shares of Conagra Brands were trading at $35.565 as of January 05. Over the last 52-week period, shares are up 11.08%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Conagra Brands is scheduled to hold the call at 09:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings