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Conagra Brands Cuts 2020 Outlook - Quick Facts

Conagra Brands Inc. (CAG) said Monday it cut its fiscal 2020 outlook as a result of softer than expected category performance in its third quarter.

The company noted that the third quarter consumption declines have impacted a wide range of categories across the food industry, including categories in which Conagra Brands competes.

The company expects a resumption of year-over-year organic net sales growth in fourth fiscal quarter.

For 2020, the company now expects adjusted earnings per share from continuing operations to be in the range of $2.00 to $2.07, net sales growth of 10.0% to 10.5%, and organic net sales growth of flat to 0.5%. Analysts polled by Thomson Reuters expect the company to report earnings of $2.11 per share for 2020. Analysts' estimates typically exclude special items.

Previously, the company expected annual adjusted earnings per share of $2.07 to $2.17, net sales growth of 12.4% to 12.9%, and organic net sales growth of 1.0% to 1.5%.

The company reaffirms its commitment to achieving its fiscal 2021, and deliver on its long-term fiscal 2022 targets.

For 2022, the company now expects adjusted earnings per share from continuing operations to be in the range of $2.66 to $2.76. it has been reduced $0.02 per share for recent divestitures.

The company still projects organic net sales growth--3-yr. CAGR ending fiscal year 2022-- to be 1% to 2%.

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