Conagra Brands reported a 1.9% revenue decline to $2.79 billion in its fiscal third quarter, prompting the company to narrow its full-year outlook. The maker of Slim Jim snacks and Snack Pack pudding cups posted adjusted earnings of 39 cents per share, falling short of the FactSet consensus of 40 cents. While sales missed expectations, the company cited a dynamic operating environment as the reason for its revised guidance. Conagra now expects full-year revenue between $11.0 billion and $11.2 billion, down from its prior range of $11.1 billion to $11.3 billion.

This marks the second consecutive quarter of revenue contraction for Conagra, reflecting broader challenges in the consumer packaged goods sector. The company's adjusted earnings of $199.8 million, excluding one-time items, came in at the lower end of its adjusted range. Analysts had anticipated slightly higher performance, with the 39-cent adjusted EPS trailing the 40-cent FactSet average. The revenue miss and outlook reduction signal Conagra is grappling with pricing pressures and consumer spending shifts in key categories.

The stock reaction to these results remains to be seen, though the outlook revision underscores management's cautious stance amid economic uncertainty. Conagra will need to demonstrate improved execution in the coming quarters to regain investor confidence and meet revised targets.