Campbell's Company Lowers Full-Year Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy CPB?
Source: seekingalpha
- Sales Decline: Campbell's Company reported a 5% drop in FQ2 sales to $2.6 billion, primarily due to lower volume and mix, indicating a cautious outlook that could impact market share.
- Margin Pressure: The adjusted gross profit margin decreased by 270 basis points to 27.7%, mainly driven by cost inflation and supply chain costs, although partially offset by cost savings, highlighting challenges in cost control.
- Revised Earnings Guidance: The company anticipates full-year organic sales growth of -1% to -2%, down from a previous forecast of -1% to +1%, with adjusted EPS expected at $2.15 to $2.25, significantly below the consensus estimate of $2.41, which may erode investor confidence.
- Market Reaction: Campbell's shares fell 6.7% in premarket trading, reflecting investor concerns over poor performance and future outlook, potentially affecting its position in the competitive food industry.
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Analyst Views on CPB
Wall Street analysts forecast CPB stock price to rise
15 Analyst Rating
2 Buy
10 Hold
3 Sell
Hold
Current: 24.680
Low
27.00
Averages
31.07
High
38.00
Current: 24.680
Low
27.00
Averages
31.07
High
38.00
About CPB
The Campbell's Company, formerly Campbell Soup Company, provides affordable food and beverages. The Company is focused on brand powerhouse, across two divisions: Meals & Beverages and Snacks. The Company’s portfolio of approximately 16 brands includes Campbell’s, Cape Cod, Chunky, Goldfish, Kettle Brand, Lance, Late July, Pace, Pacific Foods, Pepperidge Farm, Prego, Rao’s, Snack Factory Pretzel Crisps, Snyder’s of Hanover, Swanson and V8. It offers nutritious, convenient food for Canadian families. Its North American Foodservice division offers food, recipes, and tailored solutions for a wide range of segments, including healthcare facilities, restaurants and specialty coffee shops, schools, vending and micro-markets, and lodging throughout North America. Pacific Foods is a producer of organic broth and soup. Offering a wide range of tasty organic and plant-based options, soups include Creamy Roasted Red Pepper & Tomato and new ready-to-serve canned soups.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Campbell's Company Set to Release Q2 Earnings Results
- Earnings Announcement Date: Campbell's Company is set to announce its Q2 2023 earnings on March 11 before market open, with consensus EPS estimate at $0.57, reflecting a 23% year-over-year decline, and revenue estimate at $2.61 billion, down 3% year-over-year, indicating significant profitability challenges ahead.
- Historical Performance Review: Over the past two years, Campbell's has beaten EPS estimates 100% of the time and revenue estimates 63% of the time, although recent downward revisions in both EPS and revenue forecasts suggest a weakening market confidence in the company's future performance.
- Expectation Revision Status: In the last three months, there have been no upward revisions to EPS estimates, with 16 downward adjustments, while revenue estimates also saw no upward revisions and 13 downward changes, reflecting analysts' pessimistic outlook on the company's upcoming results.
- Market Reaction Analysis: Amid the Middle East war crisis, consumer staples with high dividend yields are gaining attention, and despite margin pressures on Campbell's, the stock is viewed as a potential investment opportunity due to its current depressed valuation, suggesting possible upside in the long term.
See More
Campbell's Company to Host Q2 26 Earnings Call
- Earnings Call Announcement: Campbell's Company is set to host a conference call on March 11, 2026, at 9:00 AM ET to discuss its Q2 26 earnings results, aiming to provide investors with the latest financial insights.
- Access Details: Investors can access the live webcast by visiting the company's investor website or by dialing (800) 715-9871 for US participants and (646) 307-1963 for international callers, ensuring broad investor engagement.
- Conference ID: The conference call will utilize Conference ID 8876056, facilitating quick access for participants and enhancing the efficiency of the meeting organization.
- Disclosure Statement: The views expressed during the call represent the author's opinions and do not necessarily reflect those of Nasdaq, Inc., highlighting the diversity and independence of information sources.
See More
Campbell's Company Lowers Full-Year Outlook
- Sales Decline: Campbell's Company reported a 5% drop in FQ2 sales to $2.6 billion, primarily due to lower volume and mix, indicating a cautious outlook that could impact market share.
- Margin Pressure: The adjusted gross profit margin decreased by 270 basis points to 27.7%, mainly driven by cost inflation and supply chain costs, although partially offset by cost savings, highlighting challenges in cost control.
- Revised Earnings Guidance: The company anticipates full-year organic sales growth of -1% to -2%, down from a previous forecast of -1% to +1%, with adjusted EPS expected at $2.15 to $2.25, significantly below the consensus estimate of $2.41, which may erode investor confidence.
- Market Reaction: Campbell's shares fell 6.7% in premarket trading, reflecting investor concerns over poor performance and future outlook, potentially affecting its position in the competitive food industry.
See More
Campbell's Company Q2 Earnings Miss Expectations
- Disappointing Earnings: Campbell's Company reported a Q2 non-GAAP EPS of $0.51, missing expectations by $0.06, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company posted revenues of $2.56 billion for Q2, down 4.8% year-over-year and falling short of market expectations, reflecting weak consumer demand that could lead to further market share loss.
- Lowered Full-Year Guidance: The updated guidance for fiscal 2026 indicates a projected revenue decline of 3.31% and an 18.71% drop in EPS to $2.41, suggesting management's cautious outlook on future performance, which may impact long-term investment decisions by shareholders.
- Adjusted EBIT Forecast: The forecast for adjusted EBIT shows a decline of 20% to 17%, indicating significant challenges in cost control and profitability, which may necessitate more aggressive strategies to restore growth.
See More
Campbell's Co. Lowers 2026 Earnings Guidance
- Earnings Guidance Cut: Campbell's Co. has revised its adjusted earnings forecast for fiscal 2026 to a range of $2.15 to $2.25 per share, down from the previous range of $2.40 to $2.55, indicating a cautious outlook based on current operating conditions.
- Sales Forecast Adjustment: The company anticipates an organic net sales decline of 1% to 2% for fiscal 2026, reflecting pressures in its Snacks business and influenced by first-half results and the current market environment.
- Market Reaction: In pre-market trading on Wednesday, Campbell's stock fell by $1.21, or 4.90%, signaling investor concerns regarding the company's future performance amid the revised guidance.
- Investment Strategy Shift: The company plans to adjust its business strategy based on short-term market outlooks and selective trade investments to address the challenges posed by declining sales, demonstrating its adaptability in uncertain conditions.
See More
Campbell's Company Reports Decline in Q2 Earnings
- Earnings Decline: Campbell's Company reported a net income of $145 million for Q2, translating to $0.48 per share, which is a decrease from $173 million and $0.58 per share in the same quarter last year, indicating a weakening in profitability.
- Adjusted Earnings: Excluding certain items, the adjusted earnings stood at $152 million or $0.51 per share, slightly above the GAAP figures, yet still reflecting overall pressure on earnings.
- Revenue Drop: The company's revenue for the quarter was $2.564 billion, down 4.5% from $2.685 billion last year, suggesting that weak market demand may have impacted sales performance.
- Future Guidance: The company provided a full-year EPS guidance of $2.15 to $2.25, indicating a cautious outlook for future performance and the potential need for strategic measures to address market challenges.
See More
Campbell's Company Set to Release Q2 Earnings Results
- Earnings Announcement Date: Campbell's Company is set to announce its Q2 2023 earnings on March 11 before market open, with consensus EPS estimate at $0.57, reflecting a 23% year-over-year decline, and revenue estimate at $2.61 billion, down 3% year-over-year, indicating significant profitability challenges ahead.
- Historical Performance Review: Over the past two years, Campbell's has beaten EPS estimates 100% of the time and revenue estimates 63% of the time, although recent downward revisions in both EPS and revenue forecasts suggest a weakening market confidence in the company's future performance.
- Expectation Revision Status: In the last three months, there have been no upward revisions to EPS estimates, with 16 downward adjustments, while revenue estimates also saw no upward revisions and 13 downward changes, reflecting analysts' pessimistic outlook on the company's upcoming results.
- Market Reaction Analysis: Amid the Middle East war crisis, consumer staples with high dividend yields are gaining attention, and despite margin pressures on Campbell's, the stock is viewed as a potential investment opportunity due to its current depressed valuation, suggesting possible upside in the long term.
See More
Campbell's Company to Host Q2 26 Earnings Call
- Earnings Call Announcement: Campbell's Company is set to host a conference call on March 11, 2026, at 9:00 AM ET to discuss its Q2 26 earnings results, aiming to provide investors with the latest financial insights.
- Access Details: Investors can access the live webcast by visiting the company's investor website or by dialing (800) 715-9871 for US participants and (646) 307-1963 for international callers, ensuring broad investor engagement.
- Conference ID: The conference call will utilize Conference ID 8876056, facilitating quick access for participants and enhancing the efficiency of the meeting organization.
- Disclosure Statement: The views expressed during the call represent the author's opinions and do not necessarily reflect those of Nasdaq, Inc., highlighting the diversity and independence of information sources.
See More
Campbell's Company Lowers Full-Year Outlook
- Sales Decline: Campbell's Company reported a 5% drop in FQ2 sales to $2.6 billion, primarily due to lower volume and mix, indicating a cautious outlook that could impact market share.
- Margin Pressure: The adjusted gross profit margin decreased by 270 basis points to 27.7%, mainly driven by cost inflation and supply chain costs, although partially offset by cost savings, highlighting challenges in cost control.
- Revised Earnings Guidance: The company anticipates full-year organic sales growth of -1% to -2%, down from a previous forecast of -1% to +1%, with adjusted EPS expected at $2.15 to $2.25, significantly below the consensus estimate of $2.41, which may erode investor confidence.
- Market Reaction: Campbell's shares fell 6.7% in premarket trading, reflecting investor concerns over poor performance and future outlook, potentially affecting its position in the competitive food industry.
See More
Campbell's Company Q2 Earnings Miss Expectations
- Disappointing Earnings: Campbell's Company reported a Q2 non-GAAP EPS of $0.51, missing expectations by $0.06, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company posted revenues of $2.56 billion for Q2, down 4.8% year-over-year and falling short of market expectations, reflecting weak consumer demand that could lead to further market share loss.
- Lowered Full-Year Guidance: The updated guidance for fiscal 2026 indicates a projected revenue decline of 3.31% and an 18.71% drop in EPS to $2.41, suggesting management's cautious outlook on future performance, which may impact long-term investment decisions by shareholders.
- Adjusted EBIT Forecast: The forecast for adjusted EBIT shows a decline of 20% to 17%, indicating significant challenges in cost control and profitability, which may necessitate more aggressive strategies to restore growth.
See More
Campbell's Co. Lowers 2026 Earnings Guidance
- Earnings Guidance Cut: Campbell's Co. has revised its adjusted earnings forecast for fiscal 2026 to a range of $2.15 to $2.25 per share, down from the previous range of $2.40 to $2.55, indicating a cautious outlook based on current operating conditions.
- Sales Forecast Adjustment: The company anticipates an organic net sales decline of 1% to 2% for fiscal 2026, reflecting pressures in its Snacks business and influenced by first-half results and the current market environment.
- Market Reaction: In pre-market trading on Wednesday, Campbell's stock fell by $1.21, or 4.90%, signaling investor concerns regarding the company's future performance amid the revised guidance.
- Investment Strategy Shift: The company plans to adjust its business strategy based on short-term market outlooks and selective trade investments to address the challenges posed by declining sales, demonstrating its adaptability in uncertain conditions.
See More
Campbell's Company Reports Decline in Q2 Earnings
- Earnings Decline: Campbell's Company reported a net income of $145 million for Q2, translating to $0.48 per share, which is a decrease from $173 million and $0.58 per share in the same quarter last year, indicating a weakening in profitability.
- Adjusted Earnings: Excluding certain items, the adjusted earnings stood at $152 million or $0.51 per share, slightly above the GAAP figures, yet still reflecting overall pressure on earnings.
- Revenue Drop: The company's revenue for the quarter was $2.564 billion, down 4.5% from $2.685 billion last year, suggesting that weak market demand may have impacted sales performance.
- Future Guidance: The company provided a full-year EPS guidance of $2.15 to $2.25, indicating a cautious outlook for future performance and the potential need for strategic measures to address market challenges.
See More
