Packaged food company Campbell's (NASDAQ: CPB) will be reporting earnings this Thursday before the bell. Here’s what investors should know.
Campbell's missed analysts’ revenue expectations last quarter, reporting revenues of $2.37 billion, down 4.4% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ gross margin estimates but organic revenue in line with analysts’ estimates.
Is Campbell's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Campbell’s revenue to decline 7.6% year on year, a reversal from the 1.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Campbell's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Campbell’s peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. J. M. Smucker delivered year-on-year revenue growth of 5%, beating analysts’ expectations by 4.3%, and Lamb Weston reported revenues up 5.6%, topping estimates by 4.8%. J. M. Smucker traded up 5.1% following the results while Lamb Weston was also up 8%.
Read our full analysis of J. M. Smucker’s results here and Lamb Weston’s results here.
Investors in the shelf-stable food segment have had steady hands going into earnings, with share prices flat over the last month. Campbell's is up 5.9% during the same time and is heading into earnings with an average analyst price target of $21.88 (compared to the current share price of $23.69).
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