Summary of Campbell Soup Company Q3 Fiscal 2024 Earnings Conference Call Company Overview - The conference call pertains to Campbell Soup Company, focusing on its third quarter fiscal 2024 earnings results [1] Core Points and Arguments - The call is structured to provide insights into the company's financial performance and future outlook, with an opportunity for participants to ask questions after the presentation [1] Important but Possibly Overlooked Content - The call is recorded, indicating that the information shared will be available for future reference, which may be important for analysts and investors [1]

For the quarter ended April 2024, Campbell Soup (CPB) reported revenue of $2.37 billion, up 6.3% over the same period last year. EPS came in at $0.75, compared to $0.68 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.34 billion, representing a surprise of +1.23%. The company delivered an EPS surprise of +7.14%, with the consensus EPS estimate being $0.70. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

Campbell Soup (CPB) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.68 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 7.14%. A quarter ago, it was expected that this maker of canned soup, Pepperidge Farm cookies and V8 juice would post earnings of $0.77 per share when it actually produced earnings of $0.80, delivering a surprise of ...

Rebecca Gardy SVP & Chief Investor Relations Officer Introduction Safe Harbor Regarding Forward-Looking Statements Industry and Market Data 2. Division Highlights 6. Q&A Q3 FY24 Key Messages • Remain on track for fiscal 24 Snacks operating margin of 15% Net Sales 7 Net Sales *See Non-GAAP reconciliation 1 Pro forma combined basis presented to reflect results as if the Sovos Brands acquisition had occurred at the beginning of Q3 FY23. Q3 FY23 Q3 FY24 120.0 Gampbells Forward-looking statements Non-GAAP Financ ...

Financial Performance - Net sales for the three months ended April 28, 2024, were $2,369 million, an increase of 6.3% compared to $2,229 million for the same period in 2023[10] - Net earnings attributable to Campbell Soup Company for the three months ended April 28, 2024, were $133 million, a decrease of 16.9% from $160 million in the same period last year[10] - Total comprehensive income for the three months ended April 28, 2024, was $141 million, a decrease of 10.8% from $158 million in the same period last year[11] - Net earnings for the nine months ended April 28, 2024, were $570 million, a decrease from $689 million for the same period in 2023, representing a decline of approximately 17.2%[18] - The company’s earnings before interest and taxes for the nine months ended April 28, 2024, were $923 million, down 11.3% from $1,040 million for the same period in 2023[10] Assets and Liabilities - Total assets increased to $15,243 million as of April 28, 2024, compared to $12,058 million as of July 30, 2023, reflecting a growth of 26.3%[14] - The company reported a total current liability of $3,457 million, up from $2,222 million, indicating a significant increase of 55.6%[14] - Long-term debt rose to $5,752 million as of April 28, 2024, compared to $4,498 million, representing a 27.9% increase[14] - The company experienced a restructuring charge of $17 million for the nine months ended April 28, 2024, compared to $15 million in the prior year[18] - Negative working capital was reported at $1.318 billion as of April 28, 2024, compared to $161 million as of July 30, 2023[176] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended April 28, 2024, was $897 million, slightly down from $918 million in the prior year[18] - The company reported a net cash used in investing activities of $2.987 billion, significantly higher than $269 million in the same period last year, primarily due to the acquisition of Sovos Brands[18] - Cash and cash equivalents at the end of the period were $107 million, down from $223 million at the end of the same period last year[18] - The company expects to invest approximately $705 million in capital expenditures through 2025, with $508 million already invested as of April 28, 2024[55] Acquisition of Sovos Brands - The acquisition of Sovos Brands was completed on March 12, 2024, for a total purchase consideration of $2.899 billion[121] - Total cash consideration for the acquisition of Sovos Brands was $2.899 billion, which included $2.307 billion paid to shareholders and $486 million for repayment of existing indebtedness[28] - Sovos Brands contributed $166 million to net sales and a loss of $75 million to net earnings for the period from March 12, 2024, to April 28, 2024, after accounting for transaction and integration costs[35] - The company incurred transaction and integration costs of $95 million and $114 million for the three- and nine-month periods ended April 28, 2024, respectively[34] - The company issued replacement equity awards valued at $42 million in connection with the Sovos Brands acquisition, which is included in the total purchase consideration[31] Segment Performance - The Meals & Beverages segment reported net sales of $1.272 billion for the three months ended April 28, 2024, up from $1.108 billion in the same period last year, representing a growth of 14.8%[46] - The Snacks segment generated net sales of $1,152 million for the three months ended April 28, 2024, down from $1,169 million in the same period last year, a decrease of 1.5%[49] - The Meals & Beverages segment reported a 15% sales increase, primarily due to the acquisition of Sovos Brands, while the Snacks segment saw a 2% decline[131] Expenses and Costs - Research and development expenses for the three months ended April 28, 2024, were $27 million, up from $24 million in the same period last year, marking a 12.5% increase[10] - Marketing and selling expenses increased by 6% in 2024, representing 8.7% of sales, primarily due to acquisition impacts and higher costs associated with optimization initiatives[136] - Administrative expenses rose by 25% in 2024, accounting for 8.8% of sales, largely driven by acquisition-related costs and inflation[137] - Interest expense increased to $70 million in 2024 from $47 million in 2023, primarily due to higher debt levels for the acquisition[143] Financial Instruments and Derivatives - The company entered into forward starting interest rate swaps with a notional value of $1.1 billion, settling them at a loss of $11 million, which will be recognized as additional interest expense over the debt's lifespan[194] - The notional amount of commodity contracts not designated as accounting hedges increased to $211 million as of April 28, 2024, from $194 million as of July 30, 2023[78] - The effective portion of changes in fair value for the nine months ended April 28, 2024, included a loss of $11 million from forward starting interest rate swaps[84] Strategic Initiatives and Risks - The company continues to pursue cost savings initiatives, with a focus on optimizing supply chain and manufacturing networks[159] - The company anticipates continued supply chain productivity and previously implemented pricing actions to mitigate inflationary pressures throughout 2024[122] - The company faces risks related to supply chain inputs, including labor and raw materials, which could impact its financial performance[192] - The company has identified potential risks from competitive responses to its product innovations and promotional strategies[194] Internal Controls and Reporting - The company has evaluated its disclosure controls and procedures as effective as of April 28, 2024[195] - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended April 28, 2024[196] - The company will exclude Sovos Brands' operations from its annual assessment of internal control effectiveness for the year ending July 28, 2024, as permitted by SEC guidance[198]

CAMPBELL REPORTS THIRD-QUARTER FISCAL 2024 RESULTS CAMDEN, N.J., Jun. 5, 2024—Campbell Soup Company (NYSE:CPB) today reported results for its third- quarter fiscal 2024 ended April 28, 2024. Unless otherwise stated, all comparisons are to the same period of fiscal 2023. Third quarter and year-to-date financial results include a partial quarter of contribution of the Sovos Brands acquisition. Note: A detailed reconciliation of the reported (GAAP) financial information to the adjusted financial information is ...

Core Viewpoint - Campbell Soup Company (CPB) is expected to report growth in both revenue and earnings for the third quarter of fiscal 2024, with revenue estimates at $2.34 billion, reflecting a 5% increase year-over-year [1]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for quarterly earnings has decreased by 1 cent to 70 cents per share, indicating a 2.9% growth from the previous year's quarter [2]. - CPB has a trailing four-quarter earnings surprise average of 3.7% [2]. Performance Factors - Campbell Soup's strong execution across the supply chain, successful innovations, effective marketing, and recent share trend improvements are key factors contributing to its performance [3]. - The acquisition of Sovos Brands, completed in March 2024, further positions Campbell Soup favorably for the upcoming quarter [3]. Strategic Focus - Management has optimized strategies focusing on product affordability, competitive pricing, sustained marketing and innovation, and disciplined spending aimed at high ROI [4]. - These strategies are expected to support the company's performance in the third quarter [4]. Segment Performance - The Snacks business has shown resilience, with sales growth driven by brands like Goldfish and Kettle Brand, and an anticipated 2% increase in organic sales for this segment in Q3 [5]. - Despite economic challenges, the Snacks division's growth is supported by management's DSD transformation initiative [5]. Sales Outlook - Campbell Soup is navigating a volatile consumer landscape, with management indicating a flat to low-single-digit increase in organic sales for Q3 [6]. - The company is pacing towards the lower end of its fiscal 2024 net sales outlook but expects sequential improvement throughout the year [6]. Marketing and Selling Expenses - CPB plans to invest in brand-related initiatives, with marketing and selling expenses projected to be between 9% and 10% of net sales for fiscal 2024, with a 10.7% increase in adjusted expenses expected for Q3 [7]. - The expense rate is likely to expand by 60 basis points to 9.3% [7]. Earnings Prediction Model - The Zacks model does not predict an earnings beat for Campbell Soup this time, with a Zacks Rank of 3 and an Earnings ESP of -0.47% [8].

Campbell Soup (CPB) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on June 5, 2024, might help the stock move higher if these key numbers are better than exp ...

Campbell Soup (NYSE:CPB) layoffs are a hot topic on Tuesday as the canned soup company announces plans to cut jobs as part of a reorganization. Campbell Soup says that it's restructuring its business to be more efficient. As a result, the company will be closing down an inefficient factory and moving operations. It says this will affect the jobs of 415 employees. Starting that off is the closure of the Tualatin, Ore., that it acquired in 2017. The company notes that this will impact its 330 workers. The fir ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Campbell Soup (CPB) . This company, which is in the Zacks Food - Miscellaneous industry, shows potential for another earnings beat. This maker of canned soup, Pepperidge Farm cookies and V8 juice has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an ...