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Conagra Brands Guides Q1 Adjusted Earnings In Line With Estimates - Quick Facts

While reporting financial results for the fourth quarter on Tuesday, Conagra Brands, Inc. (CAG) provided only its adjusted earnings and organic net sales growth guidance for the first quarter of fiscal 2021.

However, the company did not initiate annual outlook, as is usual, as the degree and timing of changes in retail and foodservice demand levels are difficult to predict with enough certainty.

The company remains uncertain about the impact that the COVID-19 pandemic will have on its fiscal 2021 consolidated results. It does expect retail and foodservice demand levels to trend toward historical norms as the fiscal year progresses. The company intends to provide an update on its fiscal 2021 outlook next quarter.

For the first quarter of fiscal 2021, the company expects adjusted earnings in a range of $0.54 to $0.59 per share and organic net sales growth of 10 to 13 percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $0.54 per share on revenue growth of 5.2 percent to $2.52 billion for the quarter. Analysts' estimates typically exclude special items.

Looking ahead to the long-term algorithm, the company continues to project adjusted earnings for fiscal 2022 in the range of $2.66 to $2.76 per share and organic net sales growth at a 3-year CAGR ending fiscal 2022 of 1 to 2 percent. It also remains committed to achieving its leverage target of 3.5x to 3.6x by the end of fiscal 2021.

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