Packaged food company Campbell Soup (NASDAQ:CPB) will be announcing earnings results tomorrow before the bell. Here’s what investors should know.
Campbell Soup missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $2.29 billion, up 10.9% year on year. It was a slower quarter for the company, with a miss of analysts’ organic revenue estimates.
Is Campbell Soup a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Campbell Soup’s revenue to grow 11.3% year on year to $2.80 billion, a reversal from the 2.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.87 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Campbell Soup has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Campbell Soup’s peers in the shelf-stable food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. BellRing Brands delivered year-on-year revenue growth of 17.6%, beating analysts’ expectations by 2%, and J. M. Smucker reported revenues up 17.2%, in line with consensus estimates. BellRing Brands’s stock price was unchanged after the results, while J. M. Smucker was up 3.8%.
Read our full analysis of BellRing Brands’s results here and J. M. Smucker’s results here.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 7.3% on average over the last month. Campbell Soup’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $51.81 (compared to the current share price of $46.25).
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