By Dean Seal

Conagra Brands is set to release fiscal third-quarter results on Thursday before the market opens. Here is what you need to know.

PROFIT: The maker of Slim Jims and Healthy Choice frozen meals is expected to post a profit of $236.5 million for the quarter ended Feb. 23, according to the consensus estimate of five analysts polled by FactSet. That would be down from $308.6 million in the same period a year earlier.

EARNINGS: Adjusted earnings, which strip out one-time items, are forecast to hit 52 cents a share, according to the estimates of 15 analysts surveyed by FactSet.

SALES: Revenue is projected to slip to $2.9 billion from $3.03 billion in the year-ago quarter, according to 12 analysts polled by FactSet.

The stock fell 6% during the quarter and was recently changing hands at $26.30.

WHAT TO WATCH

--Investors will want to know the impact of manufacturing challenges at Conagra's primary facility that prepares chicken for frozen meals. Conagra disclosed the service constraints in February, saying the interruptions would result in lower volumes, sales and earnings in the second half of the fiscal year.

--Conagra also said in February that consumption rates on its frozen vegetable business, which includes the Birds Eye brand, nearly doubled year-over-year in December and early January. The demand depleted its inventory and led to out-of-stocks that should weigh on third-quarter volumes.

--Investors will be looking for any updates to Conagra's guidance as consumer sentiment weakens. The company is better positioned than some of its peers as its portfolio leans toward veggies and has limited exposure to preservatives and artificial ingredients, which should be helpful as weight-loss drugs become more prevalent and regulators push to overhaul the ingredients of American groceries, JPMorgan analysts said in a research note last month. At the same time, the company has a history of putting out guidance that isn't as reliable as the analysts would like, they said.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

April 02, 2025 10:38 ET (14:38 GMT)

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