Campbell Soup (NYSE:CPB) is preparing to release its quarterly earnings on Wednesday, 2024-12-04. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Campbell Soup to report an earnings per share (EPS) of $0.89.
Anticipation surrounds Campbell Soup's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Performance in Previous Earnings
Last quarter the company beat EPS by $0.01, which was followed by a 0.95% increase in the share price the next day.
Here's a look at Campbell Soup's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.62 | 0.70 | 0.77 | 0.88 |
| EPS Actual | 0.63 | 0.75 | 0.80 | 0.91 |
| Price Change % | 1.0% | -1.0% | -3.0% | 0.0% |
Performance of Campbell Soup Shares
Shares of Campbell Soup were trading at $46.23 as of December 02. Over the last 52-week period, shares are up 5.62%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Observations about Campbell Soup
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Campbell Soup.
Analysts have provided Campbell Soup with 10 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $53.4, suggesting a potential 15.51% upside.
Comparing Ratings with Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Conagra Brands, JM Smucker and Pilgrims Pride, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- As per analysts' assessments, Conagra Brands is favoring an Neutral trajectory, with an average 1-year price target of $31.75, suggesting a potential 31.32% downside.
- JM Smucker received a Neutral consensus from analysts, with an average 1-year price target of $128.67, implying a potential 178.33% upside.
- Analysts currently favor an Neutral trajectory for Pilgrims Pride, with an average 1-year price target of $45.0, suggesting a potential 2.66% downside.
Insights: Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Conagra Brands, JM Smucker and Pilgrims Pride, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| The Campbell`s | Neutral | 10.88% | $675M | -0.08% |
| Conagra Brands | Neutral | -3.76% | $739.30M | 5.45% |
| JM Smucker | Neutral | 17.16% | $886.10M | -0.32% |
| Pilgrims Pride | Neutral | 5.16% | $683.97M | 8.82% |
Key Takeaway:
Campbell Soup ranks in the middle among its peers for revenue growth. It ranks at the bottom for gross profit. It ranks at the bottom for return on equity.
Delving into Campbell Soup's Background
Over the past 150-plus years, Campbell has evolved into a leading packaged food manufacturer in North America, with a portfolio that extends beyond its iconic red-and-white labeled canned soup. In fiscal 2024, snacks accounted for nearly half of its revenue, followed by soup (28%), other simple meals (17%), and beverages (7%). Outside its namesake, its brands include Pepperidge Farm, Goldfish, Snyder's of Hanover, Swanson, Pacific Foods, Prego, Pace, V8, and recently acquired Rao's (which closed in March 2024). Around 90% of its revenue results from the US and the remainder from Canada and Latin America.
Unraveling the Financial Story of Campbell Soup
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Over the 3 months period, Campbell Soup showcased positive performance, achieving a revenue growth rate of 10.88% as of 31 July, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Campbell Soup's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -0.13%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Campbell Soup's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -0.08%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Campbell Soup's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.02%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Campbell Soup's debt-to-equity ratio surpasses industry norms, standing at 1.99. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Campbell Soup visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
