Packaged food company Campbell's (NASDAQ: CPB) will be reporting earnings this Wednesday before market open. Here’s what investors should know.
Campbell's beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $2.48 billion, up 4.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
Is Campbell's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Campbell’s revenue to grow 1.5% year on year to $2.33 billion, slowing from the 10.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 14 analysts). Campbell's has missed Wall Street’s revenue estimates four 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. Hershey delivered year-on-year revenue growth of 26%, beating analysts’ expectations by 3.1%, and J&J Snack Foods reported revenues up 3.3%, topping estimates by 2%. Hershey’s stock price was unchanged after the resultswhile J&J Snack Foods was down 3.4%.
Read our full analysis of Hershey’s results here and J&J Snack Foods’s results here.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 3.3% on average over the last month. Campbell’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $34.65 (compared to the current share price of $32.02).
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