Q4 Earnings Highs And Lows: Conagra (NYSE:CAG) Vs The Rest Of The Packaged Food Stocks
As packaged food stocks’ Q4 earnings season wraps, let's dig into this quarter's best and worst performers, including Conagra (NYSE:CAG) and its peers.
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods, prepared meals, or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences.The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 29 packaged food stocks we track reported a slower Q4; on average, revenues missed analyst consensus estimates by 2.2% while next quarter's revenue guidance was 10.9% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but packaged food stocks held their ground better than others, with the share prices up 9.7% on average since the previous earnings results.
Conagra (NYSE:CAG)
Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE:CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.
Conagra reported revenues of $3.21 billion, down 3.2% year on year, falling short of analyst expectations by 0.8%. It was a weak quarter for the company, with a miss of analysts' organic revenue growth estimates.
The stock is down 1.1% since the results and currently trades at $28.95.
Read our full report on Conagra here, it's free.
Best Q4: Lamb Weston (NYSE:LW)
Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Lamb Weston reported revenues of $1.73 billion, up 35.7% year on year, outperforming analyst expectations by 1.9%. It was a good quarter for the company, with a decent beat of analysts' revenue estimates.
Lamb Weston scored the fastest revenue growth among its peers. The stock is up 2.6% since the results and currently trades at $107.64.
Is now the time to buy Lamb Weston? Access our full analysis of the earnings results here, it's free.
Slowest Q4: Cal-Maine (NASDAQ:CALM)
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.
Cal-Maine reported revenues of $523.2 million, down 34.7% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.
Cal-Maine had the slowest revenue growth in the group. The stock is down 1.5% since the results and currently trades at $54.04.
Read our full analysis of Cal-Maine's results here.
Vital Farms (NASDAQ:VITL)
With an emphasis on ethically produced products, Vital Farms (NASDAQ:NATR) specializes in pasture-raised eggs and butter.
Vital Farms reported revenues of $110.4 million, up 20% year on year, in line with analyst expectations. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 27.4% since the results and currently trades at $14.49.
Read our full, actionable report on Vital Farms here, it's free.
Utz (NYSE:UTZ)
Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE:UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.
Utz reported revenues of $371.9 million, up 2.5% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a miss of analysts' operating margin estimates. On the other hand, Utz blew past analysts' EPS expectations this quarter.
The stock is up 42.5% since the results and currently trades at $17.31.
Read our full, actionable report on Utz here, it's free.
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The author has no position in any of the stocks mentioned
