Yahoo Finance Here's How Campbell Soup (CPB) Looks Ahead of Q3 Earnings
Campbell Soup Company CPB is slated to release third-quarter fiscal 2020 results on Jun 3. This branded convenience foods provider delivered a positive earnings surprise of 10.8% in the last reported quarter. Further, it beat the Zacks Consensus Estimate by 12%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for the third quarter has gone up 8.6% to 76 cents per share over the past 30 days. This suggests 35.7% growth from the figure recorded in the year-ago period. Further, the consensus mark for revenues stands at $2,313 million, indicating a rise of 6.2% from the year-ago period’s reported figure.
Campbell Soup Company Price and EPS Surprise
Campbell Soup Company price-eps-surprise | Campbell Soup Company Quote
Key Factors to Note
Campbell Soup has been focused on improving the performance of its Snacks, and Meals and Beverages segments in the key North American market. The company has been particularly benefiting from its fast-growing Snacks business, which formed more than 40% of the company’s top line in the second quarter of fiscal 2020. In this regard, Campbell Soup’s buyout of Snyder's-Lance (concluded in the third quarter of fiscal 2018) is enhancing its performance. Enhanced marketing and innovation for brands under the Snacks category are likely to have driven the company’s performance in the to-be-reported quarter. Incidentally, many food players have been benefiting from the burgeoning demand, thanks to the coronavirus-led pantry loading and stay-at-home trends.
Meanwhile, Campbell Soup is progressing well with its cost-savings plan. The company’s strategy of concentrating on supply-chain efficiencies along with curtailing costs and reinvesting part of these savings in areas with high growth potential is noteworthy.
What the Zacks Model Unveils
Our proven model predicts 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 currently has a Zacks Rank #2 and an Earnings ESP of +1.23%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With Favorable Combinations
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Conagra Brands CAG has an Earnings ESP of +5.39% and a Zacks Rank #2.
General Mills GIS has an Earnings ESP of +0.76% and a Zacks Rank #2.
Smucker SJM has an Earnings ESP of +4.33% and a Zacks Rank #2.
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