Saporu sees 'strong value' in Conagra Brands after Q3 earnings

Conagra Brands Inc (NYSE: CAG) is trading up in premarket on Thursday after reporting better than expected earnings for its fiscal third quarter.

Should you buy Conagra Brands stock after earnings

Investors are cheering also because the management reiterated its guidance for the future. Conagra forecasts its organic net sales to be down up to 2.0% on $2.60 to $2.65 of per-share earnings (adjusted) in fiscal 2024.

Still, Delano Saporu of New Street Advisors recommends owning $CAG that currently pays a dividend yield of 4.82%. On CNBC's "The Exchange", he said today:

The consumer packaged goods company improved its adjusted operating margin by 49 basis points to 16.4% in Q3. Conagra stock is currently down over 20% versus its 52-week high.

Conagra Brands Q3 earnings snapshot

• Earned $308 million versus the year-ago $341 million
• Per-share earnings also declined from 72 cents to 64 cents
• Adjusted EPS printed at 69 cents as per the earnings report
• Net sales inched down 1.7% year-on-year to $3.03 billion
• Consensus was 65 cents a share on $3.01 billion in net sales

$CAG now expects its adjusted operating margin to be around 15.8% (upwardly revised), as per the earnings press release. Its CEO Sean Connolly said today: