The packaged-food maker lowered its fiscal 2027 EPS guidance to $1.40-$1.50 and halved its dividend to $0.70.
Conagra Brands reduced its fiscal 2027 adjusted earnings forecast to $1.40-$1.50 per share, missing the $1.59 estimate. The company also cut its annual dividend to $0.70 from $1.40 to bolster financial flexibility and fund business investments.
The quarterly report showed a $1.6 billion net loss due to a $2 billion impairment charge, though adjusted earnings of $0.47 per share slightly beat expectations. Net sales of $2.88 billion were just below the $2.89 billion consensus. Conagra now expects organic net sales to decline 1%-3% in fiscal 2027, steeper than the 0.4% drop in 2026.
Rising beef costs and tariffs on packaging materials are pressuring margins as inflation-weary consumers pull back on spending.