Financial Performance - Net sales for the three months ended April 27, 2025, were $2,475 million, an increase of 4.5% compared to $2,369 million for the same period in 2024[9]. - Net earnings attributable to The Campbell's Company for the three months ended April 27, 2025, were $66 million, a decrease of 50% from $133 million in the same period last year[9]. - Total costs and expenses for the three months ended April 27, 2025, were $2,314 million, up 9.1% from $2,121 million for the same period in 2024[9]. - The company reported a total comprehensive income of $67 million for the three months ended April 27, 2025, down from $141 million in the same period last year[10]. - Net earnings for the nine months ended April 27, 2025, were $457 million, a decrease of 19.74% compared to $570 million for the same period in 2024[16]. - Cash flows from operating activities provided $872 million, slightly down from $897 million in the prior year[16]. - The company reported accumulated other comprehensive loss of $15 million as of April 27, 2025[37]. - Net sales for the three months ended April 27, 2025, were $2.475 billion, an increase from $2.369 billion for the same period in 2024, representing a growth of approximately 4.5%[50]. - Total net sales for Q3 2025 were $2.475 billion, a 4% increase from $2.369 billion in Q3 2024, driven by a 15% increase in Meals & Beverages segment sales[139]. Costs and Expenses - Research and development expenses for the three months ended April 27, 2025, were $23 million, down from $27 million in the same period last year[9]. - The total cost of products sold was $1,747 million for the three months ended April 27, 2025, compared to $1,637 million for the same period in 2024[88]. - The total interest expense was $85 million for the three months ended April 27, 2025, up from $70 million for the same period in 2024[88]. - Other expenses increased to $160 million in 2025 from $30 million in 2024, primarily due to a $150 million impairment charge related to the Snyder's of Hanover trademark[145]. - Marketing and selling expenses increased by 5% in 2025, primarily due to the impact of the acquisition of Sovos Brands[143]. Assets and Liabilities - The company's total assets as of April 27, 2025, were $14,828 million, a decrease from $15,235 million as of July 28, 2024[13]. - Current liabilities decreased to $2,849 million as of April 27, 2025, from $3,576 million as of July 28, 2024[13]. - Long-term debt increased to $6,097 million as of April 27, 2025, compared to $5,761 million as of July 28, 2024[13]. - Total equity at April 27, 2025, was $3,872 million, reflecting a decrease from $3,915 million at April 28, 2024[18]. - As of April 27, 2025, the company had negative working capital of $623 million, with total debt maturing within one year at $799 million[182]. Acquisitions and Divestitures - The company completed the acquisition of Sovos Brands, Inc. for a total consideration of $2.899 billion, with cash paid to shareholders amounting to $2.339 billion[27]. - The acquisition contributed $166 million to net sales and resulted in a loss of $75 million to net earnings for the period from March 12, 2024, to April 28, 2024[31]. - The company sold its Pop Secret popcorn business for $70 million, recognizing a pre-tax loss of $25 million[33]. - The noosa yoghurt business, part of the Sovos Brands acquisition, was sold for $188 million, with an after-tax loss of $15 million recorded[35]. - The company sold its Pop Secret popcorn business for $70 million and the noosa yoghurt business for $188 million in early 2025[185]. Impairment and Restructuring - The company incurred impairment charges of $176 million during the nine months ended April 27, 2025, compared to no impairment charges in the same period last year[16]. - The company recognized an impairment charge of $150 million on the Snyder's of Hanover trademark in the third quarter of 2025, reducing its carrying value to $470 million[44]. - The total aggregate impact of impairment charges year-to-date in 2025 was $176 million ($131 million after tax, or $0.44 per share)[135]. - Total pre-tax charges related to restructuring and optimization initiatives amounted to $895 million, with approximately $720 million being cash expenditures[57]. Shareholder Returns - Dividends paid amounted to $343 million, compared to $334 million in the same period last year[16]. - The company has approximately $200 million remaining under its September 2024 share repurchase program and $301 million under the September 2021 program[188]. - The company repurchased 1.247 million shares at a cost of $60 million during the nine-month period ended April 27, 2025[101]. Future Outlook and Guidance - The company plans to adopt new accounting guidance regarding segment disclosures starting with the 2025 annual reporting[24]. - The fiscal year ends on August 3, 2025, with 53 weeks expected in 2025, compared to 52 weeks in 2024[22]. - The company expects amortization expense to be approximately $70 million in 2025 and $40 million per year for the following four years[41]. - The company anticipates continued supply chain productivity and benefits from cost savings initiatives to mitigate inflationary pressures in 2025[127]. - The company expects total estimated pre-tax costs for identified actions to be approximately $210 million, with 70% allocated to Meals & Beverages, 9% to Snacks, and 21% to Corporate[63].

Financial Performance - Net sales increased 4% to $2.5 billion, with organic net sales up 1% driven by a 2% favorable volume/mix[4] - Adjusted EBIT rose 2% to $362 million, benefiting from the Sovos Brands acquisition[4] - Adjusted EPS decreased 3% to $0.73, reflecting higher adjusted net interest expense[14] - Fiscal 2024 net sales reached $9.6 billion, with a 4% increase in net sales for the three months ended April 27, 2025, compared to $2.369 billion in the same period last year[35][43] - Net earnings attributable to The Campbell's Company for the three months ended April 27, 2025, were $66 million, a 50% decrease from $133 million in the same period last year[40][43] - Earnings before interest and taxes (EBIT) dropped by 35% to $161 million for the three months ended April 27, 2025, compared to $248 million in the prior year[40][43] - Net earnings for the nine months ended April 27, 2025, were $457 million, reflecting a 20% decline from $570 million in the same period last year[42][44] - Total net sales for the nine months ended April 27, 2025, were $7,176 million, a decrease of 9.5% compared to $7,932 million for the same period in 2024[52] - The company reported a net cash used in investing activities of $(80) million for the nine months ended April 27, 2025, compared to $(2,987) million in the prior year[48] Cost Management - The company delivered approximately $110 million in savings under its $250 million cost savings program announced in September 2024[16] - The company plans to continue focusing on cost savings and optimization initiatives to improve operational efficiency moving forward[54] - The company recognized total aggregate impacts related to cost savings and optimization initiatives of $91 million for the nine months ended April 27, 2025, which equates to $0.23 per share[55] Segment Performance - Meals & Beverages segment net sales increased 15%, while Snacks segment net sales decreased 8%[24] - Meals & Beverages segment sales increased by 15% to $1.463 billion, while Snacks segment sales decreased by 8% to $1.012 billion for the three months ended April 27, 2025[43] - For the nine months ended April 27, 2025, total sales increased by 8% to $7.932 billion, with Meals & Beverages up 19% and Snacks down 6%[42][44] - Organic net sales for the nine months ended April 27, 2025, decreased by 1% compared to the previous year, with Meals & Beverages segment showing a 1% increase while Snacks segment decreased by 4%[52] Impairment and Charges - The company recorded impairment charges of $176 million for the nine months ended April 27, 2025, significantly impacting net earnings[48] - In Q4 fiscal 2024, the company recognized an impairment charge of $76 million on the Pop Secret trademark due to lower sales and operating performance[60] - For the year ended July 28, 2024, the total aggregate impact of impairment charges was $129 million, or $0.33 per share after tax[61] - In Q3 fiscal 2025, the company recorded an impairment charge of $150 million on the Snyder's of Hanover trademark, amounting to $0.37 per share after tax[62] Acquisition Costs - The company incurred $93 million in costs associated with the acquisition of Sovos Brands, Inc., with an aggregate after-tax impact of $81 million, or $0.27 per share[64] - For the year ended July 28, 2024, the total costs associated with the acquisition reached $126 million, resulting in an after-tax impact of $109 million, or $0.36 per share[64] - Costs associated with acquisition for the three months ended April 27, 2025, were $0 million, while costs for the same period last year were $93 million[66] Cash Flow and Shareholder Returns - Cash flow from operations for the year-to-date was $872 million, with $403 million returned to shareholders through dividends and share repurchases[4] - Cash flows from operating activities for the nine months ended April 27, 2025, were $872 million, slightly down from $897 million in the prior year[48] - Cash and cash equivalents at the end of the period were $143 million, an increase from $107 million at the end of the same period last year[48] Tax and Earnings Adjustments - The effective income tax rate reported was 18.5%, down 840 basis points from 26.9% in the same quarter last year[66] - The adjusted effective income tax rate for the three months ended April 27, 2025, was 22.7%, a decrease of 10 basis points from 22.8% in the same period last year[67] - Adjusted net earnings attributable to The Campbell's Company decreased by 3% to $218 million for the three months ended April 27, 2025, compared to $224 million in the same period last year[67]

Group 1 - Campbell's Company (CPB) is set to release its third-quarter earnings results on June 2, with expected earnings of 66 cents per share, a decrease from 75 cents per share in the same period last year [1] - The company projects quarterly revenue of $2.43 billion, an increase from $2.37 billion reported in the previous year [1] - In the second quarter, Campbell's reported sales growth of 9% to $2.685 billion, which fell short of the analyst consensus estimate of $2.74 billion [2] Group 2 - Wells Fargo analyst Chris Carey maintained an Equal-Weight rating and reduced the price target from $40 to $34 [5] - Piper Sandler analyst Michael Lavery kept an Overweight rating but lowered the price target from $45 to $42 [5] - Morgan Stanley analyst Megan Alexander initiated coverage with an Equal-Weight rating and a price target of $40 [5] - JP Morgan analyst Ken Goldman downgraded the stock from Overweight to Neutral, cutting the price target from $48 to $37 [5] - Jefferies analyst Rob Dickerson maintained a Hold rating and reduced the price target from $42 to $40 [5]

Group 1: Market Overview - Investors holding mid-cap stocks have faced challenges due to inflation, higher interest rates, and tariffs impacting revenue and margins [1] - Many mid-cap stocks are trading near 52-week lows but offer dividends that compensate investors for holding [2] Group 2: Reynolds Consumer Products - Reynolds Consumer Products is experiencing pressure from inflation affecting raw material costs, particularly aluminum and resin, along with increased shipping and labor costs [3] - The company's revenue and earnings are under pressure as consumers shift to house brands, leading to a decline in volume and margins expected to continue in 2025 [4] - Analysts maintain a consensus price target of $28.33 for Reynolds, indicating an upside of over 27%, and the stock is trading at a discount with a P/E ratio of 13.21 [5] Group 3: Campbell's Company - Campbell's Company faces similar challenges as Reynolds, including rising aluminum prices and a shift in consumer preferences towards healthier options [6] - The Snacks division reported a 6% decline in net sales and a 29% drop in operating earnings year-over-year [7] - Despite these challenges, Campbell's has maintained a disciplined capital structure and increased its dividend by 5% at the start of the 2025 fiscal year [7] Group 4: J&J Snack Foods - J&J Snack Foods is experiencing increased input costs due to inflation but is largely shielded from tariffs [10] - The stock is trading at a discount to historical averages despite a P/E ratio of 26, with a consensus price target of $142.50 indicating a potential 25% increase [12] - The company's Theater business has been weak, with a 10% decline in North American box office sales impacting margins, but summer blockbusters may drive growth [11][12]

Campbell’s Company CPB will release its third-quarter earnings results before the opening bell on Monday, June 2.Analysts expect the Camden, New Jersey-based company to report quarterly earnings at 66 cents per share, down from 75 cents per share in the year-ago period. Campbell’s projects to report quarterly revenue of $2.43 billion. Compare that to the $2.37 billion it reported last year, according to data from Benzinga Pro.On May 23, Piper Sandler analyst Michael Lavery maintained Campbell’s with an Over ...

Core Insights - Campbell's (CPB) is expected to report quarterly earnings of $0.65 per share, reflecting a decline of 13.3% year over year, while revenues are forecasted to be $2.44 billion, an increase of 2.9% year over year [1] Earnings Estimates and Revisions - Analysts have collectively revised the consensus EPS estimate down by 0.5% over the past 30 days, indicating a reassessment of initial projections [1][2] - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [2] Key Metrics Forecast - Analysts estimate 'Net Sales- Meals & Beverages' at $1.41 billion, indicating a year-over-year increase of 10.6% [4] - The forecast for 'Net Sales- Snacks' is $1.03 billion, suggesting a year-over-year decline of 5.8% [4] - 'Operating Earnings- Meals & Beverages' are projected to reach $248.40 million, up from $229 million reported in the same quarter last year [4] - 'Operating Earnings- Snacks' are expected to be $137.08 million, down from $167 million reported in the same quarter last year [5] Stock Performance - Over the past month, Campbell shares have declined by 4.7%, contrasting with the Zacks S&P 500 composite's increase of 7.4% [5] - Based on its Zacks Rank 4 (Sell), Campbell is anticipated to underperform the overall market in the upcoming period [5]

Core Viewpoint - Campbell's is anticipated to report a year-over-year decline in earnings despite an increase in revenues, which could significantly influence its stock price depending on the actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for June 2, 2025, with expectations of quarterly earnings at $0.65 per share, reflecting a year-over-year decrease of 13.3%. Revenues are projected to be $2.44 billion, representing a 2.9% increase from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.49% over the last 30 days, indicating a collective reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Campbell is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.30%. This suggests a bearish sentiment among analysts regarding the company's earnings prospects [10][11]. Historical Performance - In the last reported quarter, Campbell exceeded the consensus EPS estimate of $0.73 by posting earnings of $0.74, achieving a surprise of +1.37%. Over the past four quarters, the company has consistently beaten consensus EPS estimates [12][13]. Investment Considerations - Despite the potential for an earnings beat, the combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict a positive outcome for Campbell's upcoming earnings report. Investors are advised to consider other factors beyond earnings surprises when making investment decisions [11][16].

Core Insights - Campbell's Company (CPB) is expected to report revenue growth of 2.9% year-over-year, with a consensus estimate of $2.44 billion for Q3 fiscal 2025 [1] - However, a decline in earnings is anticipated, with the consensus estimate for earnings per share at 65 cents, reflecting a 13.3% decrease from the previous year [2] Revenue and Earnings Expectations - The Meals & Beverages division is projected to see a sales growth of 10.8% in Q3 fiscal 2025, driven by successful integration of Sovos Brands and strong brand performance from Rao's and Prego [3] - Conversely, the Snacks segment is expected to decline by 3.2% in organic sales due to changing consumer trends and competitive pressures [4] Cost Management and Efficiency - The company is making progress on its cost savings plan, benefiting from the integration of Sovos Brands and network optimization projects, which are expected to enhance overall efficiency [5] - Focus on SG&A cost efficiencies is likely to support margins and profitability in the upcoming quarter [5] Earnings Prediction Model - Current analysis indicates that Campbell's does not have a strong likelihood of an earnings beat, with a Zacks Rank of 3 (Hold) and an Earnings ESP of -0.30% [6]

Group 1 - The Campbell's Company (NASDAQ: CPB) is expected to report weak fiscal Q3 results for the February-April period on June 2nd [1] - The company's recent acquisition of Sovos is highlighted as a factor contributing to the weak outlook [1] Group 2 - The investment philosophy discussed emphasizes identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1]

Core Viewpoint - Campbell's (CPB) is positioned well to potentially beat earnings estimates in its next quarterly report, supported by a solid history of performance in this regard [1]. Group 1: Earnings Performance - Campbell has consistently beaten earnings estimates, with an average surprise of 1.83% over the last two quarters [2]. - In the last reported quarter, Campbell achieved earnings of $0.74 per share, surpassing the Zacks Consensus Estimate of $0.73 per share, resulting in a surprise of 1.37% [3]. - In the previous quarter, the company was expected to post earnings of $0.87 per share but delivered $0.89 per share, yielding a surprise of 2.30% [3]. Group 2: Earnings Estimates and Predictions - Recent favorable changes in earnings estimates for Campbell have been noted, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [6]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that stocks like Campbell have a nearly 70% chance of producing a positive surprise [7]. - Campbell currently has an Earnings ESP of +0.37%, indicating that analysts have recently become more optimistic about the company's earnings prospects [9].