Earnings Alerts

Campbell Soup Co (CPB) Earnings: Q3 EPS Beats Estimates with Strong Sales Performance

  • Campbell Soup’s adjusted EPS for Q3 is 75 cents, beating the estimate of 70 cents.
  • Net sales reached $2.37 billion, surpassing the estimate of $2.34 billion.
  • Sales in the Meals & Beverages segment totaled $1.27 billion, exceeding the estimate of $1.21 billion.
  • Snacks sales were $1.10 billion, slightly below the estimate of $1.11 billion.
  • Organic net sales in the Snacks segment decreased by 1%, counter to the estimated growth of 0.93%.
  • Price and sales allowances for Meals & Beverages dropped by 1%, compared to the estimated decline of 0.56%.
  • Volume and product mix in the Snacks segment decreased by 1%, against an estimate increase of 1.17%.
  • Full-year fiscal 2024 guidance has been updated to include Sovos Brands.
  • Current analyst ratings: 5 buys, 13 holds, and 4 sells.

Campbell Soup Co on Smartkarma

Analysts on Smartkarma, such as Baptista Research, have been closely following Campbell Soup Co and providing valuable insights. In their report titled “The Campbell Soup Company: Can The Acquisition Of Sovos Brands Be A Game Changer? – Key Drivers,” Baptista Research highlighted Campbell Soup Company’s decent earnings and moderately optimistic results. Clouse, from Baptista Research, noted a sequential improvement in volume trends and operating margin expansion, despite slowed category trends due to economic pressures. The report focuses on evaluating factors influencing the company’s price and conducting an independent valuation using a Discounted Cash Flow methodology.

Continuing their analysis, Baptista Research‘s report “Campbell Soup Company: A Balanced Approach to Market Dynamics! – Major Drivers” discussed Campbell Soup’s recent fiscal quarter performance. The company faced a 1% decline in organic net sales, reaching $2.5 billion, following a significant 15% increase in the previous year. Despite this, a commendable 7% growth was recorded on a 2-year compound annual growth rate basis. The report highlighted specific divisional performances, with planned declines in one area and growth in others, shedding light on the company’s market dynamics and growth strategies.


A look at Campbell Soup Co Smart Scores

FactorScoreMagnitude
Value3
Dividend4
Growth3
Resilience2
Momentum4
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Campbell Soup Co has a mixed long-term outlook. The company performs well in areas related to dividends and momentum, with scores of 4 in both categories. This indicates that Campbell Soup Co is offering attractive dividend yields and has strong momentum in its stock performance. Additionally, the company receives a moderate score of 3 for its value and growth prospects, suggesting it is reasonably valued and has potential for expansion. However, Campbell Soup Co faces challenges in terms of resilience, with a score of 2, which may indicate some vulnerability to market fluctuations.

Campbell Soup Company, known for its branded convenience food products, operates across global markets with divisions focused on soups and sauces, biscuits and confectionery, and foodservice. While the company demonstrates strength in dividends and momentum, its overall outlook reflects a balance of positive and cautionary factors. Investors may want to consider the company’s performance in value, growth, and resilience alongside its solid dividend and momentum standings when evaluating long-term investment opportunities.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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