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Campbell Soup (CPB) Q1 Earnings Coming Up: Is a Beat Likely?
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Campbell Soup Company (CPB - Free Report) is likely to register a top-line decline when it reports first-quarter fiscal 2024 earnings on Dec 6. The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, suggesting a decrease of 2.7% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 87 cents per share. This indicates a drop of 14.7% from the year-ago quarter’s reported figure. CPB has a trailing four-quarter earnings surprise of 8.6%, on average.
Factors to Note
Favorable net price realization and consumer demand have been offering respite to Campbell Soup amid cost inflation and volume declines. The company’s organic net sales grew 5% in the fourth quarter of fiscal 2023 on inflation-driven net price realization and solid in-market performance. Our model suggests a benefit of 2.9% from price and sales allowances in the first quarter. However, soft volumes and volatile currency movements are concerns.
The ongoing cost inflation has also been a hurdle. Additionally, planned investments in marketing and selling may have dented the bottom line in the first quarter. We expect a 19.8% rise in adjusted marketing and selling expenses in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Campbell Soup 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.
Campbell Soup carries a Zacks Rank #3 and has an Earnings ESP of +0.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies worth considering as our model shows that these also have the correct combination to beat on earnings this time:
RH (RH - Free Report) has an Earnings ESP of +0.22% and a Zacks Rank #3. The company is likely to witness a top-and-bottom-line decline when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for RH’s quarterly revenues is pegged at $752.1 million, which suggests a drop of 13.5% from the figure reported in the prior-year quarter. You can seethe complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RH’s quarterly EPS has risen by a penny in the past 30 days to 93 cents, which suggests a decrease of 83.6% from the year-ago quarter’s level. RH has a trailing four-quarter earnings surprise of 15.5%, on average.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +1.98% and a Zacks Rank #3. The company is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $57.5 billion, indicating a rise of 5.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Costco’s quarterly earnings of $3.44 suggests an increase of almost 11% from the year-ago quarter’s levels. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.19% and a Zacks Rank of 3. The company is likely to register a bottom-line increase when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.27 suggests a rise from $2.00 reported in the year-ago quarter.
lululemon’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.19 billion, which indicates a rise of 17.8% from the figure reported in the prior-year quarter. lululemon has a trailing four-quarter earnings surprise of 6.8%, on average.
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Campbell Soup (CPB) Q1 Earnings Coming Up: Is a Beat Likely?
Campbell Soup Company (CPB - Free Report) is likely to register a top-line decline when it reports first-quarter fiscal 2024 earnings on Dec 6. The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, suggesting a decrease of 2.7% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 87 cents per share. This indicates a drop of 14.7% from the year-ago quarter’s reported figure. CPB has a trailing four-quarter earnings surprise of 8.6%, on average.
Factors to Note
Favorable net price realization and consumer demand have been offering respite to Campbell Soup amid cost inflation and volume declines. The company’s organic net sales grew 5% in the fourth quarter of fiscal 2023 on inflation-driven net price realization and solid in-market performance. Our model suggests a benefit of 2.9% from price and sales allowances in the first quarter. However, soft volumes and volatile currency movements are concerns.
The ongoing cost inflation has also been a hurdle. Additionally, planned investments in marketing and selling may have dented the bottom line in the first quarter. We expect a 19.8% rise in adjusted marketing and selling expenses in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Campbell Soup 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.
Campbell Soup carries a Zacks Rank #3 and has an Earnings ESP of +0.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies worth considering as our model shows that these also have the correct combination to beat on earnings this time:
RH (RH - Free Report) has an Earnings ESP of +0.22% and a Zacks Rank #3. The company is likely to witness a top-and-bottom-line decline when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for RH’s quarterly revenues is pegged at $752.1 million, which suggests a drop of 13.5% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RH’s quarterly EPS has risen by a penny in the past 30 days to 93 cents, which suggests a decrease of 83.6% from the year-ago quarter’s level. RH has a trailing four-quarter earnings surprise of 15.5%, on average.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +1.98% and a Zacks Rank #3. The company is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $57.5 billion, indicating a rise of 5.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Costco’s quarterly earnings of $3.44 suggests an increase of almost 11% from the year-ago quarter’s levels. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.19% and a Zacks Rank of 3. The company is likely to register a bottom-line increase when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.27 suggests a rise from $2.00 reported in the year-ago quarter.
lululemon’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.19 billion, which indicates a rise of 17.8% from the figure reported in the prior-year quarter. lululemon has a trailing four-quarter earnings surprise of 6.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.