Back to top

Image: Bigstock

Campbell's Readies for Q1 Earnings: Things to Watch for CPB Stock

Read MoreHide Full Article

Key Takeaways

  • Campbell's is expected to face margin pressure from tariffs and increased marketing spend.
  • Soft snack demand may weigh on CPB as the Snacks category continues to show sluggish trends.
  • Steady at-home cooking likely supported Meals & Beverages, keeping core soup and sauce brands relevant.

The Campbell's Company (CPB - Free Report) is likely to register a decrease in the top and bottom lines when it reports first-quarter fiscal 2026 earnings on Dec. 9. The Zacks Consensus Estimate for revenues is pegged at $2.66 billion, implying a 4.1% drop from the prior-year quarter’s reported figure. 

The consensus mark for earnings has declined by a penny in the past 30 days to 73 cents per share, which indicates a drop of almost 18% from the figure reported in the year-ago quarter. CPB delivered a trailing four-quarter earnings surprise of 6.2%, on average.

The Campbell's Company Price, Consensus and EPS Surprise

The Campbell's Company Price, Consensus and EPS Surprise

The Campbell's Company price-consensus-eps-surprise-chart | The Campbell's Company Quote

Things to Know Ahead of CPB’s Upcoming Results

Campbell’s is likely to face pressure from several fronts in the upcoming results. Tariffs are expected to have created a drag, weighing on profitability before the company’s cost-saving and sourcing initiatives can fully offset the impact. The company is also likely to have incurred higher marketing spend, as it continues to invest in its brands. Though this move supports long-term growth, it may have tightened margins in the quarter under review. We expect a 70-basis-point contraction in the adjusted gross margin for the quarter under review.

CPB’s Snacks business is likely to have continued operating in a sluggish category. While some brands showed slight improvement late last year, overall snack demand remains soft and may have limited the segment’s recovery in the first quarter. Our model suggests a 2.7% decline in Snacks unit sales for the first quarter.

On the positive side, Campbell’s is likely to have benefited from steady at-home cooking habits, which continue to support its Meals & Beverages division. Core brands in soups, broths and sauces likely remained relevant with consumers, while Rao’s appears to have regained some momentum after shipment timing noise in the prior quarter.

Earnings Whispers for CPB

Our proven model predicts an earnings beat for The Campbell's Company 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 exactly the case here. 

The Campbell's Company has a Zacks Rank #3 and an Earnings ESP of +0.24% at present. 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 some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.

Church & Dwight Co., Inc. (CHD - Free Report) currently has an Earnings ESP of +1.54% and a Zacks Rank of 3. The consensus mark for quarterly revenues is pegged at $1.64 billion, which indicates growth of 3.9% 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 Church & Dwight’s quarterly earnings per share (EPS) is pegged at 85 cents, which implies a 10.4% increase year over year. CHD delivered a trailing four-quarter earnings surprise of almost 6%, on average.

The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +1.25% and a Zacks Rank of 3. The consensus estimate for Hershey’s quarterly revenues stands at $2.97 billion, which indicates 2.9% growth from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $1.39, which implies a 48.3% decrease year over year. HSY delivered a trailing four-quarter earnings surprise of nearly 15%, on average.

Philip Morris (PM - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 3. The consensus estimate for quarterly revenues is pegged at $10.41 billion, which calls for 7.2% growth from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Philip Morris’ upcoming quarter’s bottom line is pegged at $1.67 per share, which suggests 7.7% growth from the figure recorded in the year-ago period. PM delivered a trailing four-quarter earnings surprise of 4.4%, on average.

Published in