Yahoo Finance Campbell Soup (CPB) Queued for Q1 Earnings: What Awaits?
Campbell Soup Company CPB is likely to register top-line growth when it reports first-quarter fiscal 2023 earnings on Dec 7. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,428 million, suggesting a rise of 8.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has risen by 2 cents in the past 30 days to 86 cents per share. However, this indicates a 3.4% decline from the figure reported in the prior-year quarter.
The food company has a trailing four-quarter earnings surprise of 6.5%, on average. CPB’s earnings came in line with the Zacks Consensus Estimate in the last reported quarter.
We expect first-quarter net revenues to be up 7% year over year to $2,391.5 million and the bottom line to dip 7.4% to 82 cents a share.
Campbell Soup Company Price, Consensus and EPS Surprise
Campbell Soup Company price-consensus-eps-surprise-chart | Campbell Soup Company Quote
Factors to Note
Campbell Soup has been struggling with cost inflation for a while. In the fourth quarter of fiscal 2022, inflation and other factors had an adverse impact of 810 basis points on the adjusted gross margin. Most of this was a result of cost inflation stemming from a nearly 15% hike in input prices.
Inflation is likely to come in the low-teens range in fiscal 2023. During the fiscal, pension income is expected to decline by about $35 million, which is likely to reflect a headwind of nearly 3% in the adjusted EBIT and adjusted EPS growth in fiscal 2023. These factors raise concerns for the quarter under review.
That said, Campbell Soup’s fiscal 2023 guidance reflects the expectations of persistent solid product demand. This, along with pricing actions and limited price elasticities amid escalated inflation, is likely to boost sales growth in the Meals & Beverages and Snacks divisions.
Sales growth in the segments is likely to be backed by elevated brand investments facilitated by an enhanced supply chain. These upsides also bode well for the quarter to be reported.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Campbell Soup this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Campbell Soup carries a Zacks Rank #3 and has an Earnings ESP of -0.63%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Casey's General Stores CASY currently has an Earnings ESP of +12.58% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $3.10 suggests an increase of 19.7% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's General’s top line is anticipated to rise year over year. The consensus mark for CASY’s revenues is pegged at $4.16 billion, indicating an increase of 27.5% from the figure reported in the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 1.3%, on average.
Rent the Runway RENT currently has an Earnings ESP of +2.08% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate of a loss of 56 cents per share suggests an improvement of 83.3% from the year-ago quarter.
Rent the Runway’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $73.1 million, which suggests a rise of 23.8% from the figure reported in the prior-year quarter. RENT delivered an earnings beat of 18.5% in the last reported quarter.
Fastenal FAST currently has an Earnings ESP of +1.14% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 42 cents suggests an increase of 5% from the year-ago quarter.
Fastenal’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.7 billion, which suggests a rise of 9.2% from the figure reported in the prior-year quarter. FAST delivered an earnings beat of 4.8%, on average, in the trailing four quarters.
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Fastenal Company (FAST) : Free Stock Analysis Report
Campbell Soup Company (CPB) : Free Stock Analysis Report
Rent the Runway, Inc. (RENT) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
