Back to top

Image: Bigstock

Campbell's Gears Up for Q4 Earnings: Here's What Investors Should Know

Read MoreHide Full Article

Key Takeaways

  • Campbells sees 4.1% sales growth in Meals & Beverages, aided by Sovos integration and strong brands.
  • Snacks segment faces a 4.5% organic sales decline amid shifting consumer trends and competition.
  • Cost-savings from Sovos integration and SG&A efficiencies help offset inflation and supply-chain costs.

The Campbell's Company (CPB - Free Report) is likely to register top-line growth when it reports fourth-quarter fiscal 2025 earnings on Sept. 3. The Zacks Consensus Estimate for revenues is pegged at $2.33 billion, implying a 1.8% increase from the prior-year quarter’s reported figure.

However, the company is likely to register a bottom-line decline in the fiscal fourth quarter. The consensus mark for quarterly earnings per share (EPS) has moved up a penny in the past 30 days to 57 cents, indicating a 9.5% decrease from the figure reported in the year-ago quarter. CPB delivered a trailing four-quarter earnings surprise of 4.4%, on average.

Things to Know Ahead of CPB’s Q4 Earnings

Campbell's has been benefiting from momentum in the Meals & Beverages division, bolstered by the successful integration of Sovos Brands. In addition, brands like Rao’s and Prego continue to gain market traction in the segment. Our model indicates 4.1% sales growth in the segment during the fourth quarter of fiscal 2025. This, coupled with a strong innovation pipeline and effective marketing, bodes well.

However, the company has been witnessing soft performance in the Snacks business amid shifting consumer trends and competitive dynamics within the market. We expect the segment’s organic sales to decline 4.5% in the to-be-reported quarter. Apart from this, core inflation and ongoing supply-chain cost pressures are headwinds. On its last earnings call, management highlighted that it expects core inflation to rise in the second half of the fiscal year — both year over year and sequentially — with full-year core inflation to stay in the low single-digit range.

Despite these pressures, Campbell has been making strong progress on its cost-savings plan, with benefits from the Sovos Brands integration and network optimization projects supporting overall efficiency. Additionally, the company’s focus on driving SG&A cost efficiencies is likely to have offered some cushion in the to-be-reported quarter.

Earnings Whispers for CPB Stock

Our proven model does not conclusively predict 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 not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Campbell's currently has an Earnings ESP of -0.61% and a Zacks Rank #5 (Strong Sell).

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

Stocks With the Favorable Combination

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

Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +2.26% and a Zacks Rank of 1. The Zacks Consensus Estimate for third-quarter 2025 EPS is pegged at 27 cents, which implies an increase from break-even earnings in the year-ago quarter. The consensus mark has moved up 35% in the past 30 days. You can see the complete list of today’s Zacks #1 Rank stocks here

The consensus mark for Celsius Holdings’ quarterly revenues is pegged at $685 million, which indicates growth of 157.8% from the figure reported in the prior-year quarter. CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average.

Coca-Cola (KO - Free Report) currently has an Earnings ESP of +0.03% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports third-quarter 2025 numbers. The consensus mark for revenues is pegged at $12.51 billion, which indicates a jump of 5.6% from the figure reported in the year-ago quarter. 

The Zacks Consensus Estimate for KO’s quarterly EPS of 79 cents implies a rise of 2.6% from the year-ago quarter. The consensus mark has been stable in the past 30 days. KO has a trailing four-quarter earnings surprise of 4.9%, on average.

Keurig Dr Pepper (KDP - Free Report) currently has an Earnings ESP of +0.09% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports third-quarter 2025 numbers. The consensus mark for revenues is pegged at $4.16 billion, which indicates a rise of 6.9% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for KDP’s quarterly EPS of 54 cents implies a rise of 5.9% from the year-ago quarter. The consensus mark has been stable in the past 30 days. KDP has a negative trailing four-quarter earnings surprise of 3.1%, on average.

Published in