Based in Camden, New Jersey, Campbell Soup Company (CPB) is a leading food and beverage company specializing in soups, snacks, and simple meals. Founded in 1869, Campbell has a market cap of $14.2 billion and is renowned for its iconic brands and commitment to quality. The company is set to announce its fiscal Q1 earnings results on Wednesday, Dec. 4.
Ahead of the event, analysts expect CPB to report a profit of $0.87 per share, down 4.4% from $0.91 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. Campbell Soup's adjusted earnings of $0.63 per share for the last quarter surpassed the consensus estimate by 1.6%.
For fiscal 2024, analysts expect CPB to report EPS of $3.20, up 3.9% from $3.08 in fiscal 2023.
CPB stock is up 10.2% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 22.1% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 12.7% returns over the same time frame.
Campbell Soup's underperformance over the past year stems from rising input costs due to inflation, supply chain disruptions, and elevated labor expenses. Additionally, intensified competition within the packaged foods sector has put pressure on both volumes and pricing power, limiting the company’s ability to pass cost increases on to consumers.
On August 29, CPB announced its fourth-quarter earnings, reporting a mixed performance that left investors cautious. Although the company managed to exceed analysts’ expectations for adjusted EPS, its revenue fell short of forecasts. This revenue miss, coupled with a conservative annual profit outlook, led to a 1.8% decline in CPB’s stock.
The consensus opinion on CPB stock is cautious, with an overall “Hold” rating. Out of 16 analysts covering the stock, four advise a “Strong Buy” rating, nine suggest a “Hold,” one advises a “Moderate Sell” rating, and two recommend a “Strong Sell.”
CPB's average analyst price target is $50.75, indicating a potential upside of 6.6% from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
