ConAgra Stock Dips 3% After Cutting Full-Year Guidance

ConAgra Brands Inc. fell 3 percent after the food producer reported fiscal third-quarter earnings that missed analyst estimates and lowered its full-year profit forecast, citing weak sales and rising commodity costs.

The company affirmed its quarterly dividend of 35 cents per share, a key focus for investors given the stock’s 9 percent yield. While the new full-year earnings guidance of $1.70 per share still covers the $1.40 annual dividend, the cut highlights pressure on profitability.

Metric	Actual	Consensus	Year-over-Year
Adjusted EPS	39 cents	40 cents	-23.5%
Revenue	$2.8B	$2.8B	-1.9%
Gross Margin	23.6%	N/A	-1.4pp

The maker of Slim Jim snacks and Marie Callender’s meals is struggling with a 1.9 percent year-over-year sales decline and a 1.4 percentage point drop in gross margins. Shares traded at $15.25 midday Wednesday, bringing their 12-month decline to 43 percent.

Dividend in Focus

ConAgra maintained its 35-cent quarterly dividend, reassuring investors who have pushed the stock’s yield to approximately 9 percent—the highest in the S&P 500. The company has paid a dividend every quarter since 1976. However, such a high yield often signals market concern about its sustainability.

Wall Street remains skeptical, with only 13 percent of analysts covering the stock rating it a Buy, far below the S&P 500 average of 55 to 60 percent. The average analyst price target sits at about $18 per share.

The lowered guidance suggests profitability challenges from rising commodity prices and soft consumer demand may persist. Investors will be closely watching future earnings reports for any further margin erosion that could jeopardize the dividend payout.

This article is for informational purposes only and does not constitute investment advice.