CAMPBELL'S REPORTS FIRST QUARTER FISCAL 2026 RESULTS; REAFFIRMS FULL-YEAR FISCAL 2026 GUIDANCE Items Impacting Comparability The table below presents a summary of items impacting comparability in each period. A detailed reconciliation of the reported (GAAP) financial information to the adjusted information is included at the end of this news release. | | Diluted Earnings Per Share | | | --- | --- | --- | | | Three Months Ended | | | | November 2, | | | | 2025 | October 27, 2024 | | As Reported (GAAP) | $0.6 ...

Core Insights - The Campbell's Company reported a 3% decrease in net sales for the first quarter of fiscal 2026, totaling $2.7 billion, compared to the same period in fiscal 2025 [3][6][37] - The CEO highlighted the company's focus on quality, value, and innovation, while also addressing cost savings initiatives to mitigate inflation impacts [2][14] Financial Performance - Net sales decreased from $2.772 billion in Q1 fiscal 2025 to $2.677 billion in Q1 fiscal 2026, with organic net sales down 1% [3][6] - Earnings Before Interest and Taxes (EBIT) fell by 8% to $336 million, while adjusted EBIT decreased by 11% to $383 million [3][10] - Diluted earnings per share (EPS) decreased to $0.65 from $0.72, with adjusted EPS down 13% to $0.77 [3][12] Cost and Expense Management - Gross profit decreased to $792 million, with a gross profit margin of 29.6%, down from 31.3% [7] - Marketing and selling expenses increased by 1% to $253 million, while adjusted marketing and selling expenses decreased by 2% to $237 million [8] - Administrative expenses decreased by 5% to $167 million, with adjusted administrative expenses down 9% to $150 million [9] Segment Performance - Meals & Beverages segment net sales decreased by 4%, while Snacks segment net sales decreased by 2% [22][26] - Operating earnings for Meals & Beverages fell by 13%, and Snacks operating earnings decreased by 10% [22][27] Cash Flow and Shareholder Returns - Cash flow from operations was $224 million, slightly down from $225 million in the prior year [13] - The company paid $120 million in cash dividends and repurchased approximately $24 million in common stock during the quarter [13] Strategic Initiatives - The company achieved approximately $15 million in cost savings in the first quarter, totaling $160 million towards its fiscal 2028 target of $375 million [14] - Campbell's announced the acquisition of a 49% interest in La Regina for $286 million, expected to close in the second half of fiscal 2026 [15][16] Guidance - The company reaffirmed its full-year fiscal 2026 guidance, anticipating organic net sales to range from a decrease of 1% to an increase of 1% [17][19]

Earnings Report - Campbell's Company is set to release its first-quarter earnings results on December 9, with analysts expecting earnings of 73 cents per share, a decrease from 89 cents per share in the same period last year [1] - The consensus estimate for Campbell's quarterly revenue is $2.66 billion, down from $2.77 billion reported last year [1] Management Changes - The company announced that Martin Bally, Vice President of Information Technology, is no longer employed following a lawsuit that revealed an alleged audio recording of him making disparaging and racist comments [2] - Following this news, Campbell's shares rose by 1.5%, closing at $30.04 [2] Analyst Ratings - Morgan Stanley maintained an Equal-Weight rating and reduced the price target from $33 to $30 [4] - Wells Fargo kept an Equal-Weight rating but increased the price target from $32 to $34 [4] - TD Cowen maintained a Hold rating and raised the price target from $29 to $31 [4] - Piper Sandler downgraded the stock from Overweight to Neutral and cut the price target from $35 to $34 [4] - JP Morgan maintained a Neutral rating and lowered the price target from $37 to $34 [4]

Core Insights - The Q3 earnings season has shown strong results, with a projected 13.4% increase in earnings per share for S&P 500 companies, marking the fourth consecutive quarter of double-digit growth [2][3] - Oracle is anticipated to report significant earnings, following its impressive second quarter results that highlighted a substantial cloud backlog [4][17] - Mentions of "AI" during earnings calls have reached a record high, indicating its growing importance in corporate strategies and market performance [13][14] Group 1: Earnings Reports - Campbell's Company reported a 3% decline in net sales year over year to $2.67 billion, with earnings per share dropping to $0.65, below Wall Street estimates [6][7] - Toll Brothers' earnings per share for the fiscal fourth quarter were $4.58, missing estimates of $4.89, while revenue was $3.41 billion, slightly above expectations [10][11] - Victoria's Secret raised its 2025 guidance for net sales to $6.45 billion to $6.48 billion, up from previous estimates, and reported a net loss of $0.46 per share, better than expected [18][19][20] Group 2: Market Trends - The retail sector is experiencing shifts, with specialty retailers like GameStop and AutoZone expected to report results that will provide insights into consumer spending patterns [4] - Companies mentioning "AI" have seen a higher average stock price increase compared to those that did not, indicating a market trend favoring AI-related investments [14][15][16] - The competitive landscape for grocery retailers like Kroger is intensifying, with challenges from Amazon and Walmart affecting market sentiment [28][29] Group 3: Company Strategies - CrowdStrike raised its full-year revenue guidance, attributing growth to increased demand for its AI-driven cybersecurity solutions [55][56] - Snowflake's partnership with Anthropic aims to enhance its AI capabilities, although its revenue guidance fell short of expectations, leading to a stock decline [36][39][40] - Marvell announced the acquisition of Celestial AI for $3.25 billion, aiming to strengthen its position in AI datacenter infrastructure [61][63]

The Campbell’s Company (NASDAQ:CPB) will release earnings results for the first quarter before the opening bell on Tuesday, Dec. 9.Analysts expect the company to report quarterly earnings at 73 cents per share, down from 89 cents per share in the year-ago period. The consensus estimate for Campbell’s quarterly revenue is $2.66 billion. Last year, it reported $2.77 billion in revenue, according to Benzinga Pro.On Friday, Morgan Stanley analyst Megan Alexander maintained Campbell’s with an Equal-Weight rating ...

Core Viewpoint - Campbell Soup Company (CPB) is expected to report a decline in earnings for the quarter ending October 2025, with anticipated EPS of $0.73 and revenue of approximately $2.66 billion, reflecting a year-over-year decrease in both metrics [3]. Financial Performance - CPB has a history of exceeding earnings estimates, with an average earnings surprise of 10.54% over the past two quarters [2]. - In the most recent quarter, CPB reported an EPS of $0.62, surpassing the expected $0.57, resulting in an 8.77% surprise [2]. - The previous quarter showed a 12.31% surprise, with an EPS of $0.73 against a $0.65 estimate [2]. Earnings Estimates - Analysts predict an 18% decline in EPS compared to the same period last year, with the projected revenue indicating a 4.1% year-over-year decrease [3]. - The consensus EPS estimate has been revised downward by 0.5% over the past month, reflecting a reassessment of initial projections [4]. Financial Ratios - CPB's financial metrics include a price-to-earnings (P/E) ratio of 14.51 and a price-to-sales ratio of 0.85 [5]. - The enterprise value to sales ratio is 1.54, and the enterprise value to operating cash flow ratio is 13.84 [5]. - The company's debt-to-equity ratio stands at 1.85, with a current ratio of 0.77, indicating its ability to cover short-term liabilities [5].

Core Insights - The Campbell's Company (CPB) is expected to report a decline in both revenue and earnings for the first quarter of fiscal 2026, with revenue estimated at $2.66 billion, reflecting a 4.1% decrease from the previous year [1] - The earnings consensus has decreased to 73 cents per share, indicating an almost 18% drop compared to the same quarter last year [2] Financial Performance Expectations - CPB is anticipated to face profitability pressures due to tariffs and increased marketing expenditures, which may lead to a contraction of 70 basis points in adjusted gross margin for the quarter [3] - The Snacks segment is projected to see a 2.7% decline in unit sales, continuing to operate in a sluggish market [4] Positive Factors - The Meals & Beverages division is likely to benefit from sustained at-home cooking trends, with core brands in soups, broths, and sauces remaining relevant to consumers [5] Earnings Prediction - A positive earnings surprise is predicted for CPB, supported by a Zacks Rank of 3 (Hold) and an Earnings ESP of +0.24% [6]

Core Insights - Campbell's is expected to report quarterly earnings of $0.73 per share, reflecting an 18% decline year-over-year, with revenues projected at $2.66 billion, a decrease of 4.1% compared to the previous year [1] Group 1: Earnings Estimates - The consensus EPS estimate for the quarter has been adjusted downward by 0.5% over the past 30 days, indicating a reassessment by analysts [1][2] - Analysts predict 'Net Sales- Meals & Beverages' to be $1.63 billion, showing a year-over-year decline of 4.2% [3] - 'Net Sales- Snacks' is estimated at $1.03 billion, reflecting a year-over-year change of -3.7% [4] Group 2: Operating Earnings - 'Operating Earnings- Meals & Beverages' is projected to reach $291.75 million, down from $337.00 million reported in the same quarter last year [4] - Analysts estimate 'Operating Earnings- Snacks' at $136.65 million, compared to $142.00 million in the same quarter last year [5] Group 3: Stock Performance - Over the past month, shares of Campbell have returned -0.9%, while the Zacks S&P 500 composite has seen a +0.1% change [5] - Campbell currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [5]

Core Viewpoint - Campbell's is facing a significant controversy due to a lawsuit involving its former vice president, which has negatively impacted its stock performance and raised concerns ahead of its upcoming earnings report [1][2]. Stock Performance - Following the allegations, Campbell's shares fell over 3% on November 24 and continued to decline, reaching lows reminiscent of the Global Financial Crisis. As of December 3, the stock was trading at $29.89, down approximately 5.3% from $31.56 on November 24 [2]. Earnings Report Expectations - Campbell's fiscal first-quarter earnings report is set to be released on December 9, with mixed predictions from analysts. Evercore ISI maintains an "In Line" rating with a $36 price target but anticipates declines in both sales and profit [3]. - The Zacks Consensus Estimate projects quarterly earnings of $0.74 per share, reflecting a 16.9% decrease year-over-year, while revenue is expected to be $2.66 billion, down 3.9% from the previous year [4]. Long-term Outlook - Despite the current challenges, the long-term outlook for Campbell's stock appears more positive. The majority of analysts rate it a "Hold," with an average price target of $33.21 for the next 12 months, indicating an 8.56% upside from current levels [5].

Core Viewpoint - The market anticipates a year-over-year decline in Campbell's earnings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Campbell is expected to report quarterly earnings of $0.74 per share, reflecting a year-over-year decrease of 16.9%, with revenues projected at $2.66 billion, down 3.9% from the previous year [3]. - The consensus EPS estimate has been revised 0.2% lower in the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a negative Earnings ESP of -0.08%, suggesting analysts have become more pessimistic about Campbell's earnings prospects [12]. - The stock holds a Zacks Rank of 3, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Campbell exceeded expectations by delivering earnings of $0.62 per share against an expected $0.57, resulting in a surprise of +8.77% [13]. - Over the past four quarters, Campbell has consistently beaten consensus EPS estimates [14]. Market Reaction Factors - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment [15]. - Betting on stocks expected to beat earnings can improve success odds, highlighting the importance of monitoring Earnings ESP and Zacks Rank [16].