By Mackenzie Tatananni

Shares of Conagra Brands slumped in premarket trading Thursday after the packaged-food company issued a weak fiscal-year outlook and reported fourth-quarter earnings that fell short of expectations.

Conagra recorded adjusted earnings of 56 cents a share in its fiscal fourth quarter, narrowly missing the 58 cents a share analysts had anticipated, according to FactSet. Sales of $2.78 billion also came in below the $2.83 billion Wall Street had forecast.

The maker of Reddi-wip and Slim Jims attributed weakness in the latest quarter to higher-than-expected inflation, supply constraints, and foreign exchange headwinds. But fiscal-year guidance appeared to be weighing most on shares, which fell 5% to $19.35 in the premarket session.

Conagra said it expects adjusted earnings between $1.70 and $1.85 a share in fiscal 2026, below the $2.18 a share analysts were expecting at the midpoint. Organic sales are anticipated to range down 1% to up 1%.

The company noted that previously announced tariffs are expected to impact fiscal-year results. While negotiations between the U.S. and key trading partners are ongoing, the guidance considers a 50% tax rate on imported tin plate steel and aluminum, a 30% rate on limited imports from China, and a 10% rate on imports from other countries.

"Combined, these tariffs are expected to increase cost of goods sold by approximately 3% annually," the company said. Management plans to take actions to curb the impact of tariffs, including sourcing alternatives and accelerating cost-savings initiatives.

Conagra shares have lost 27% this year and more than 28% over the past 12 months.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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July 10, 2025 08:37 ET (12:37 GMT)

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