Why Conagra Stock Tumbled by Nearly 6% on Tuesday
The market didn't find the stock of Conagra Brands (NYSE: CAG) very tasty on the first trading day of the week after the holiday weekend. On the back of significantly lowered guidance, investors collectively traded out of the veteran packaged foods company to the point where the shares lost almost 6% of their value. And this was on a day when the S&P 500 (SNPINDEX: ^GSPC) landed in positive territory, with a 0.2% rise.Conagra revealed the new outlook for its fiscal 2025, and it's no wonder investors found it wanting. The company now believes its organic sales will fall by roughly 2% compared to the previous fiscal year; formerly, it was guiding for a decline of only around 0.7% to 0.8%. It also shaved its forecast for non-GAAP (generally accepted accounting principles) adjusted earnings per share. Management is now modeling approximately $2.35 per share for the period, where before it expected $2.45 to $2.50. By comparison, the fiscal 2024 result was $2.67. Continue reading
The market didn't find the stock of Conagra Brands (NYSE: CAG) very tasty on the first trading day of the week after the holiday weekend. On the back of significantly lowered guidance, investors collectively traded out of the veteran packaged foods company to the point where the shares lost almost 6% of their value. And this was on a day when the S&P 500 (SNPINDEX: ^GSPC) landed in positive territory, with a 0.2% rise.
Conagra revealed the new outlook for its fiscal 2025, and it's no wonder investors found it wanting. The company now believes its organic sales will fall by roughly 2% compared to the previous fiscal year; formerly, it was guiding for a decline of only around 0.7% to 0.8%.
It also shaved its forecast for non-GAAP (generally accepted accounting principles) adjusted earnings per share. Management is now modeling approximately $2.35 per share for the period, where before it expected $2.45 to $2.50. By comparison, the fiscal 2024 result was $2.67.
