CPB's third-quarter results are likely to show strength in Meals & Beverages segment, while weakness in Snacks segment raises concerns.
The Campbell's Company's organic growth has turned from slow to negative, accelerated by a slow snacks segment. The surge in GLP-1 drug usage is pressuring industry-wide snack sales. The Q3 report is likely to continue Campbell's worrying organic sales decline. Profitability should gain from cost savings, but benefits are offset by weak pricing and cost inflation. Based on lower estimates, CPB's fair value is approximately $44.9. The fair value estimate comes with a profitability caveat, though.
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.
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Campbell (CPB) reported earnings 30 days ago. What's next for the stock?
With inflationary pressures and a weakening Snacks division, the outlook for CPB remains bleak. Investors are advised to proceed with caution and reassess their holdings.
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I reiterate my hold rating for Campbell's stock due to continued struggles with organic growth and weak core business performance. CPB's 2Q25 results show a 2% decline in organic sales, with gross margin contracting and EBIT margin falling, leading to a downward revision of FY25 guidance. Structural issues persist in both the Snacks and Meals & Beverages segments, with ineffective promotions and declining margins despite cost optimizations.
RBC Capital Markets analyst Nik Modi reiterated the Sector Perform rating on Campbell's Co CPB, lowering the price forecast to $44 from $51.
CPB's fiscal second-quarter results show a 9% net sales increase, driven by the Sovos Brands acquisition. The company has lowered its 2025 guidance.
The Campbell's Company (NASDAQ:CPB ) Q2 2025 Earnings Conference Call March 5, 2025 8:00 AM ET Company Participants Rebecca Gardy - Senior Vice President, Chief Investor Relations Officer Mick Beekhuizen - President and Chief Executive Officer Carrie Anderson - Executive Vice President and Chief Financial Officer Conference Call Participants Andrew Lazar - Barclays Jim Salera - Stephens Ken Goldman - JPMorgan Peter Galbo - Bank of America Robert Moskow - TD Cowen Operator Good morning and welcome to the Campbell's Second Quarter Fiscal 2025 Earnings Conference Call. Today's conference is being recorded.
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