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Factors to Note Before Campbell Soup's (CPB) Q4 Earnings
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Campbell Soup Company (CPB - Free Report) is likely to register top-line growth when it reports fourth-quarter fiscal 2023 earnings on Aug 31. The Zacks Consensus Estimate for revenues is pegged at $2.06 billion, suggesting a rise of 3.5% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2023 net sales is pegged at $9.35 billion, suggesting an increase of 9.2% from the year-ago period’s reported figure.
However, Campbell Soup’s fiscal fourth-quarter bottom line is likely to decline year over year. The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 50 cents per share, indicating a decline of 10.7% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for fiscal 2023 earnings is pegged at $3.00 per share, projecting growth of 5.3% from the year-ago period’s reported figure. Campbell Soup has a trailing four-quarter earnings surprise of 8.6% on average.
Campbell Soup has been benefiting from its growing Snacks business. We expect sales in the Snacks business to come in at $1,125.6 million in the fourth quarter, suggesting a year-over-year growth of 7%.
Strength in the company’s brand portfolio and favorable pricing actions yield. CPB’s strategy of concentrating on supply-chain efficiencies, curtailing costs, and reinvesting part of these savings in high-growth potential areas is noteworthy. These upsides bode well for the quarter under review.
For fiscal 2023, management expects 8.5-10% net sales and organic sales growth. Adjusted EBIT is likely to have increased 4.5-6.5% during the year. The company envisions fiscal 2023 adjusted earnings per share (EPS) to be $2.95-$3.00, suggesting growth of 3.5-5% from the year-ago period’s levels.
Yet, Campbell Soup has been battling cost inflation and increased other supply-chain expenses. Rising marketing, selling expenses and administrative expenses are a hurdle. Management’s fiscal 2023 outlook reflects planned investments in the fourth quarter. We believe that these might come at the cost of margins.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Campbell Soup this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Campbell Soup carries a Zacks Rank #3 and has an Earnings ESP of -0.60%.
Some Stocks With Favorable Combination
Here are three companies worth considering, as our model shows that these have the correct elements to beat on earnings this time.
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +8.52% and a Zacks Rank #2. The company will likely register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly EPS is pegged at 15 cents, calling for a surge from 4 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters’ top line is expected to fall year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.19 billion, suggesting a marginal decline of 0.9% from the figure reported in the prior-year quarter. American Eagle Outfitters has a trailing four-quarter earnings surprise of 9.2%, on average.
Costco (COST - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of 3. COST is likely to witness a bottom-line growth from the year-ago fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings is pegged at $4.72 per share, suggesting a 12.4% rise from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $78.9 billion, suggesting a 9.4% rise from the figure reported in the prior-year fiscal quarter. COST delivered an earnings beat of 1.8%, on average, in the trailing four quarters.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and carries a Zacks Rank #3. The company is likely to register a bottom-line decline when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly EPS is pegged at $3.39, suggesting a drop of 17.1% from the year-ago quarter’s levels.
Casey's General Stores’ top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, indicating a fall of 13.5% from the figure reported in the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 7.5% on average.
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Factors to Note Before Campbell Soup's (CPB) Q4 Earnings
Campbell Soup Company (CPB - Free Report) is likely to register top-line growth when it reports fourth-quarter fiscal 2023 earnings on Aug 31. The Zacks Consensus Estimate for revenues is pegged at $2.06 billion, suggesting a rise of 3.5% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2023 net sales is pegged at $9.35 billion, suggesting an increase of 9.2% from the year-ago period’s reported figure.
However, Campbell Soup’s fiscal fourth-quarter bottom line is likely to decline year over year. The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 50 cents per share, indicating a decline of 10.7% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for fiscal 2023 earnings is pegged at $3.00 per share, projecting growth of 5.3% from the year-ago period’s reported figure. Campbell Soup has a trailing four-quarter earnings surprise of 8.6% on average.
Campbell Soup Company Price and EPS Surprise
Campbell Soup Company price-eps-surprise | Campbell Soup Company Quote
Things to Note
Campbell Soup has been benefiting from its growing Snacks business. We expect sales in the Snacks business to come in at $1,125.6 million in the fourth quarter, suggesting a year-over-year growth of 7%.
Strength in the company’s brand portfolio and favorable pricing actions yield. CPB’s strategy of concentrating on supply-chain efficiencies, curtailing costs, and reinvesting part of these savings in high-growth potential areas is noteworthy. These upsides bode well for the quarter under review.
For fiscal 2023, management expects 8.5-10% net sales and organic sales growth. Adjusted EBIT is likely to have increased 4.5-6.5% during the year. The company envisions fiscal 2023 adjusted earnings per share (EPS) to be $2.95-$3.00, suggesting growth of 3.5-5% from the year-ago period’s levels.
Yet, Campbell Soup has been battling cost inflation and increased other supply-chain expenses. Rising marketing, selling expenses and administrative expenses are a hurdle. Management’s fiscal 2023 outlook reflects planned investments in the fourth quarter. We believe that these might come at the cost of margins.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Campbell Soup this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Campbell Soup carries a Zacks Rank #3 and has an Earnings ESP of -0.60%.
Some Stocks With Favorable Combination
Here are three companies worth considering, as our model shows that these have the correct elements to beat on earnings this time.
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +8.52% and a Zacks Rank #2. The company will likely register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly EPS is pegged at 15 cents, calling for a surge from 4 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters’ top line is expected to fall year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.19 billion, suggesting a marginal decline of 0.9% from the figure reported in the prior-year quarter. American Eagle Outfitters has a trailing four-quarter earnings surprise of 9.2%, on average.
Costco (COST - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of 3. COST is likely to witness a bottom-line growth from the year-ago fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings is pegged at $4.72 per share, suggesting a 12.4% rise from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $78.9 billion, suggesting a 9.4% rise from the figure reported in the prior-year fiscal quarter. COST delivered an earnings beat of 1.8%, on average, in the trailing four quarters.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and carries a Zacks Rank #3. The company is likely to register a bottom-line decline when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly EPS is pegged at $3.39, suggesting a drop of 17.1% from the year-ago quarter’s levels.
Casey's General Stores’ top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, indicating a fall of 13.5% from the figure reported in the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 7.5% on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.