Campbell (CPB) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
The Campbell's Company (NASDAQ:CPB ) Barclays 18th Annual Global Consumer Staples Conference 2025 September 4, 2025 8:15 AM EDT Company Participants Mick Beekhuizen - CEO, President & Director Carrie Anderson - Executive VP & CFO Conference Call Participants Andrew Lazar - Barclays Bank PLC, Research Division Presentation Andrew Lazar MD & Senior Research Analyst With us today are CEO, Mick Beekhuizen; and CFO, Carrie Anderson. Thank you both for being here.
More people are cooking at home. That's been good for Campbell's bottom line.
Shares of Campbell's Co. rallied in early Wednesday trading after the soups, meals and snacks company beat its fourth-quarter profit expectations as a “deliberate” consumer continued to focus on cooking at home.
Campbell's stock is attractively valued after a 30% decline, presenting a compelling entry point for investors. The company boasts a high dividend yield, offering strong income potential for shareholders. Campbell's growing snack division provides a catalyst for future earnings growth and diversification beyond soup.
Campbell's acquisition of Sovos aimed to boost growth, but near-term earnings pressure and integration risks remain significant concerns. Despite steady sales growth via M&A, organic growth is weak and margins have stagnated, with net debt still high after recent divestitures. Shares have fallen sharply, now trading at just 10x earnings, reflecting investor disappointment and presenting a potentially attractive entry point for value seekers.
Campbell (CPB) reported earnings 30 days ago. What's next for the stock?
CPB stock nears a 52-week low as weak snack sales, cost inflation and a muted outlook weigh on investor sentiment.
In the first half of 2023, Campbell's Co. executives were bragging about sales growth in the company's snacks division, helped in no small part by higher prices and its Goldfish crackers brand, which benefited from new flavors and popularity among teenagers. Last year, even as trends shifted, they said Goldfish had crossed $1 billion in sales, as consumers gobbled up new offerings like Goldfish Crisps.
Home-cooked meals are in, according to Campbell's, and snacks are out.
Campbell Soup Company (NYSE:CPB), known for its flagship canned soup products, reported fiscal third quarter results that topped Wall Street estimates, driven by strength in its meals and beverages segment. Sales for the three months ending April 27 were $2.48 billion, up 4% year-over-year and ahead of estimates of $2.43 billion.
CPB beats Q3 sales and earnings estimates as Meals & Beverages drives organic growth, but Snacks' weakness weighs on the full-year outlook.