Advertisement
New Zealand markets open in 1 hour 6 minutes
  • NZX 50

    11,767.40
    +68.89 (+0.59%)
     
  • NZD/USD

    0.6147
    +0.0015 (+0.25%)
     
  • ALL ORDS

    8,015.80
    +72.20 (+0.91%)
     
  • OIL

    81.57
    +1.24 (+1.54%)
     
  • GOLD

    2,344.10
    +15.10 (+0.65%)
     

Campbell Soup (CPB) to Report Q3 Earnings: Things to Note

Campbell Soup Company CPB is likely to register top-line growth when it reports third-quarter fiscal 2023 earnings on Jun 7. The Zacks Consensus Estimate for revenues is pegged at $2,219 million, suggesting a rise of 4.2% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for the bottom line has dipped by a penny in the past 30 days to 64 cents per share. The projection indicates a decline of 8.6% from the figure reported in the year-ago period quarter. Campbell Soup has a trailing four-quarter earnings surprise of 10.7%, on average.

Campbell Soup Company Price, Consensus and EPS Surprise

Campbell Soup Company price-consensus-eps-surprise-chart | Campbell Soup Company Quote

Factors to Consider

The company’s brand strength and pricing actions are aiding growth. Campbell Soup benefits from strength in the Snacks business and a focus on innovation. On its last earnings call, management highlighted that it recently announced the new Kettle Brand air-fried potato chips and was impressed with the initial customer and consumer response to the launch. These upsides bode well for the quarter under review.

However, cost inflation is a concern. On its last earnings call, management highlighted that it expects inflation in the low teens for fiscal 2023. Elevated marketing and selling expenses have also been a downside. Nonetheless, the company’s saving and pricing actions augur well.

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 chances of an earnings beat, which is not the case here.

Campbell Soup has an Earnings ESP of -1.17% and a Zacks Rank #3. 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:

Church & Dwight CHD currently has an Earnings ESP of +0.35% and a Zacks Rank #3. The company’s top line is expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.4 billion, which implies a rise of 7.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the quarterly EPS is pegged at 79 cents, which indicates 4% growth from the year-ago period figure. CHD has a trailing four-quarter earnings surprise of 9.8%, on average.

The Boston Beer Company SAM currently has an Earnings ESP of +0.04% and a Zacks Rank of 3. SAM is expected to register a top-and-bottom-line decline when it reports second-quarter fiscal 2023 numbers.

The Zacks Consensus Estimate for Boston Beer’s quarterly revenues is pegged at $598.3 million, calling for a decline of 3.4% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $3.46 suggests a drop of 19.7% from the figure reported in the year-ago fiscal quarter. SAM has a trailing four-quarter negative earnings surprise of 88.7%, on average.

Constellation Brands STZ currently has an Earnings ESP of +2.94% and a Zacks Rank of 3. STZ is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, suggesting growth of 4.5% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for Constellation Brands’ quarterly earnings has remained the same at $2.82 per share in the past 30 days. The consensus estimate indicates growth of 6% from the figure reported in the prior-year quarter. STZ has a trailing four-quarter earnings surprise of nearly 5.2%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

ADVERTISEMENT

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Campbell Soup Company (CPB) : Free Stock Analysis Report

Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report

Constellation Brands Inc (STZ) : Free Stock Analysis Report

The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research