Campbell’s (NASDAQ:CPB) Issues Quarterly Earnings Results, Hits Estimates

Campbell’s (NASDAQ:CPB) issued its quarterly earnings results on Thursday. The company reported $0.39 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.39, FiscalAI reports. The firm had revenue of $2.14 billion for the quarter. Campbell’s had a return on equity of 16.44% and a net margin of 4.04%.The firm’s quarterly revenue was down 7.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.62 earnings per share. Campbell’s updated its FY 2027 guidance to 1.650-1.800 EPS.

Here are the key takeaways from Campbell’s’ conference call:

• Campbell’s expects organic sales to decline approximately 3% in fiscal 2027, with Snacks down high single digits in the first quarter and consumption not expected to reach positive growth by year-end.
• The company reduced its dividend, citing the need to support long-term value creation, while interest expense is expected to rise by about $25 million year over year; refinancing a $500 million bond, potentially through a higher-coupon hybrid security, remains under consideration.
• Management announced a new $500 million, four-year cost-savings program, including procurement, headcount reductions, and supply-chain optimization; savings are expected to build through fiscal 2030 and be weighted toward the second half of fiscal 2027.
• Campbell’s plans 4%-5% price increases across roughly 60% of its portfolio, with positive price realization expected from the second quarter onward to help offset 5%-6% inflation and elevated logistics costs.
• Meals & Beverages showed strength in cooking soups, broth, condensed cooking products, and Rao’s, while management is investing in innovation and brand support; Snacks’ recovery will rely on Goldfish and Pepperidge Farm initiatives, though meaningful margin improvement is not expected until the second half.

Campbell’s Trading Down 3.4%

CPB opened at $21.38 on Friday. The firm’s 50 day moving average is $22.73 and its 200-day moving average is $22.35. Campbell’s has a 52-week low of $19.56 and a 52-week high of $34.17. The company has a quick ratio of 0.38, a current ratio of 0.82 and a debt-to-equity ratio of 1.60. The firm has a market capitalization of $6.38 billion, a P/E ratio of 16.32, a P/E/G ratio of 2.54 and a beta of 0.03.

Campbell’s Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Thursday, October 1st will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $1.00 annualized dividend and a yield of 4.7%. Campbell’s’s dividend payout ratio (DPR) is 77.23%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on CPB. Barclays lowered their price objective on shares of Campbell’s from $19.00 to $18.00 and set an “underweight” rating for the company in a research note on Friday. JPMorgan Chase & Co. raised their price objective on Campbell’s from $20.00 to $22.00 and gave the stock a “neutral” rating in a report on Tuesday, August 18th. Stifel Nicolaus boosted their target price on Campbell’s from $20.00 to $22.00 and gave the stock a “hold” rating in a report on Wednesday, July 22nd. Sanford C. Bernstein reissued an “underperform” rating and set a $19.00 target price (down from $21.00) on shares of Campbell’s in a research report on Tuesday, June 9th. Finally, DA Davidson raised shares of Campbell’s to a “hold” rating in a research report on Monday, July 6th. Thirteen research analysts have rated the stock with a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $19.94.

Institutional Investors Weigh In On Campbell’s

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Campbell’s by 3.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,472 shares of the company’s stock worth $777,000 after acquiring an additional 685 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in Campbell’s by 4.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 660,543 shares of the company’s stock valued at $26,369,000 after purchasing an additional 27,374 shares in the last quarter. Empowered Funds LLC purchased a new stake in Campbell’s during the 1st quarter worth approximately $446,000. Woodline Partners LP increased its holdings in Campbell’s by 40.9% during the 1st quarter. Woodline Partners LP now owns 16,623 shares of the company’s stock worth $664,000 after purchasing an additional 4,827 shares during the last quarter. Finally, Geneos Wealth Management Inc. raised its position in shares of Campbell’s by 333.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 975 shares of the company’s stock valued at $39,000 after purchasing an additional 750 shares in the last quarter. Hedge funds and other institutional investors own 52.35% of the company’s stock.

Key Stories Impacting Campbell’s

Here are the key news stories impacting Campbell’s this week:

• Positive Sentiment: Management announced a plan targeting approximately $500 million in savings, including workforce reductions and other cost actions. The initiative is intended to repair margins and accelerate debt reduction. Campbell’s slashes 13% of salaried workforce as part of $500M cost-cutting plan
• Positive Sentiment: Campbell’s plans to discuss its business and outlook at a Barclays Global Consumer Staples Conference fireside chat on September 9, giving investors an opportunity to hear more about the turnaround strategy. Campbell’s Barclays conference announcement

About Campbell’s

Campbell’s (NASDAQ: CPB) is a leading manufacturer of shelf-stable foods and beverages, best known for its iconic soups and broths. Headquartered in Camden, New Jersey, the company offers a diverse portfolio of products designed to meet consumer demand for convenient, affordable meals and snacks. Since its founding in 1869, Campbell’s has grown through a combination of organic innovation and strategic acquisitions to expand its presence in the food industry.

The company’s brand portfolio includes Campbell’s Condensed Soups, V8 juices, Prego pasta sauces, Swanson broths and stocks, Pace salsas and dips, and Pepperidge Farm baked snacks.