Conagra Brands, Inc. (CAG), a consumer packaged goods holding company, on Friday reported a net loss for the second quarter. However, the company's adjusted earnings beat Street view. In addition, Conagra Brands has reaffirmed its annual outlook.
For the three-month period to November 23, the company posted a net loss of $663.6 million, or $1.39 per share, compared with a profit of $284.5 million, or $0.59 per share, in the same period last year, mainly due to certain non-cash goodwill and brand impairment charges.
Excluding items, earnings were $218 million, or $0.45 per share, less than $337 million, or $0.70 per share, in the previous year. On average, analysts polled had forecast the company to register earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
Operating loss was $597.6 million as against the previous year's earnings of $402.6 million.
The company reported sales of $2.979 billion, less than $3.195 billion a year ago. This decline in sales reflects the impact of mergers and acquisitions, decreased organic sales, and others.
Looking ahead, Sean Connolly, CEO of Conagra Brands, said: "As we look ahead to the second half, we are well positioned to return to organic net sales growth supported by a robust innovation pipeline, increased merchandising and A&P investment, and a resilient supply chain. While the macro environment remains dynamic, our active management and focused execution give us confidence in our path forward. Accordingly, we are reaffirming our fiscal 2026 guidance."
For the full year, Conagra Brands still expects adjusted earnings of $1.70 to $1.85 per share, compared with analysts' forecast of $1.85 per share. Organic net sales growth is anticipated to be in the range of negative 1% to positive 1%.
CAG was down by 0.73% at $17.68 in the pre-market trade on the New York Stock Exchange.
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