Investing.com -- ConAgra Brands, Inc. (NYSE: CAG) reported second-quarter fiscal 2025 results that exceeded analyst expectations for both earnings and revenue but lowered its full-year earnings guidance.
The packaged food company posted adjusted earnings per share of $0.70, surpassing the analyst consensus of $0.68. Revenue came in at $3.2 billion, slightly above estimates of $3.15 billion. However, reported net sales decreased 0.4% YoY, while organic net sales increased 0.3%.
ConAgra updated its fiscal 2025 outlook, now projecting adjusted earnings per share between $2.45 and $2.50, below the analyst consensus of $2.58 and lower than its prior target of between $2.60 and $2.65. The company expects organic net sales near the midpoint of a range between -1.5% to flat compared to fiscal 2024.
Sean Connolly, President and CEO of ConAgra Brands, commented, "Our business returned to growth in the second quarter despite a continued challenging consumer environment as our investments paid off, driving strong market share performance. While momentum remains strong, we expect the business to be impacted by two headwinds in the back half, including higher than expected inflation and unfavorable foreign exchange rates, leading us to update our fiscal 2025 outlook."
The company’s Grocery & Snacks segment saw a 2.0% increase in net sales to $1.3 billion, while the Refrigerated & Frozen segment remained flat at $1.3 billion. The International segment experienced a 12.9% decrease in net sales to $243 million.
ConAgra’s stock is down around 0.3% premarket.