Packaged food company Campbell's (NASDAQ:CPB) will be reporting results tomorrow before market hours. Here’s what investors should know.
Campbell's missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $2.77 billion, up 10.1% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but a miss of analysts’ organic revenue 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 11.4% year on year to $2.74 billion, a reversal from the 1.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. 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 Q4 results, giving us a hint as to what we can expect. Hershey delivered year-on-year revenue growth of 8.7%, beating analysts’ expectations by 1.6%, and Lancaster Colony reported revenues up 4.8%, topping estimates by 2.8%. Hershey traded up 6.2% following the results while Lancaster Colony was also up 11.9%.
Read our full analysis of Hershey’s results here and Lancaster Colony’s results here.
Investors in the shelf-stable food segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Campbell's is up 6.2% during the same time and is heading into earnings with an average analyst price target of $47.88 (compared to the current share price of $41.29).
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