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Campbell's Q2 Earnings on Deck: Key Factors You Should Understand

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The Campbell's Company (CPB - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2025 earnings on March 5. The Zacks Consensus Estimate for revenues is pegged at $2.74 billion, implying an 11.7% increase from the prior-year quarter’s reported figure. Although the consensus mark for earnings has moved up by a penny in the past 30 days to 73 cents per share, the projection indicates an 8.8% decline from the figure reported in the year-ago quarter. CPB has a trailing four-quarter earnings surprise of 3.7%, on average.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Things to Know About CPB’s Q2 Earnings

Campbell’s has been reaping benefits from consistent innovations, effective marketing programs and share trend improvements. It is focused on prioritizing execution and strong collaboration with retail partners to deliver both quality and value. In addition, the company’s Meals & Beverages division continues to aid growth, supported by consistent consumer trust and at-home cooking trends. Our model suggests 1.5% organic sales growth in the segment during the second quarter of fiscal 2025.

On its last earnings call, management stated that it expects to witness a sequential improvement in the fiscal second quarter, driven by robust holiday demand. Key drivers are likely to have been enhanced consumer confidence, normalized pricing and contributions from Sovos Brands.

The Campbell's Company Price and EPS Surprise

The Campbell's Company Price and EPS Surprise

The Campbell's Company price-eps-surprise | The Campbell's Company Quote

That being said, a continued dynamic consumer environment, characterized by cautious spending habits and evolving preferences, poses a threat. The Snacks division, in particular, is bearing the brunt of these shifts. We expect the segment’s organic sales to decline 1.7% in the to-be-reported quarter. Apart from this, core inflation and ongoing supply-chain cost pressures are headwinds. However, the company is progressing well with its cost-saving efforts, which is likely to have offered some respite.

Earnings Whispers for CPB Stock

Our proven model predicts an earnings beat for Campbell's 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 the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Campbell's carries a Zacks Rank #3 and has an Earnings ESP of +2.62%.

Other Stocks With the Favorable Combination

Here are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +0.14% and a Zacks Rank of 2. The company is likely to register growth in its top and bottom lines when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $63.2 billion, which suggests 8.2% growth from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Costco’s quarterly earnings per share is pegged at $4.09, indicating a 10.2% increase from the year-ago period. COST has a trailing four-quarter earnings surprise of 2%, on average.

Sysco (SYY - Free Report) currently has an Earnings ESP of +0.18% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports second-quarter 2025 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.04, up 8.3% from the year-ago period. SYY has a trailing four-quarter negative earnings surprise of 0.4%, on average.

The consensus estimate for Sysco’s quarterly revenues is pegged at $20.09 billion, which implies an increase of 3.7% from the prior-year quarter.

RH (RH - Free Report) currently has an Earnings ESP of +2.15% and a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for RH’s quarterly earnings per share is pegged at $1.90, up 163.9% from the year-ago period. RH has a trailing four-quarter negative earnings surprise of 113.6%, on average.

The consensus estimate for RH’s quarterly revenues is pegged at $826.6 million, which implies an increase of almost 12% from the prior-year quarter.

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