Shares of Conagra Brands declined on Wednesday after the company reduced its annual dividend and issued profit guidance that came in below Wall Street expectations.
The packaged food company posted adjusted earnings of 47 cents a share for the quarter ended May 31, down from 56 cents a year ago but slightly above Wall Street's expectation for 46 cents. Sales grew 3.6% to $2.88 billion, mostly in line with the analyst consensus call, according to FactSet.
Conagra stock fell 5.9% to $13.31 in premarket trading on Wednesday.
Looking ahead, Conagra forecasts fiscal 2027 adjusted earnings of $1.40 to $1.50 a share, with organic net sales expected to decline between 1% and 3%. Wall Street had been predicting a profit of $1.56 a share, according to FactSet.
Along with the guidance, Conagra also announced Wednesday that it's cutting its annual dividend to 70 cents, down from its previous rate of $1.40.
Barron's warned on Tuesday that Conagra's dividend could be at risk.
"Resetting our dividend to an annualized rate of $0.70 per share proactively realigns our capital allocation, accelerates progress toward our leverage target, supports critical investments, and strengthens our financial flexibility, including the ability to shape the portfolio over time," CEO John Brase said in the release Wednesday.
Write to Kit Norton at kit.norton@barrons.com
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July 15, 2026 09:14 ET (13:14 GMT)
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