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].

Core Viewpoint - Many stocks are presenting generational buying opportunities, with specific metrics indicating value and potential catalysts for growth [1][2]. Group 1: Chevron Corporation (CVX) - Chevron's stock has been stagnant over the past three years, trading down approximately 4% [3]. - Analysts have a consensus price target of $165.71 for Chevron, indicating a potential 21% upside from its current trading price, which is near its 52-week low [7]. - The company is expected to generate up to $8 billion in free cash flow by 2025 and is finalizing a merger with Hess Co. [6]. - Chevron has a dividend yield of 5%, with an annual payout of $6.84 per share, marking the 38th consecutive year of dividend increases [7]. Group 2: United Parcel Service (UPS) - UPS stock is currently at a 5-year low, impacted by reduced spending from low- and middle-income consumers [8][9]. - Analysts have a consensus Hold rating on UPS, with a price target of $128.74, suggesting a 31.8% upside [9]. - The company is implementing an initiative called "Efficiency Reimagined" to increase profitability amid expected revenue losses from its largest customer [9]. - UPS offers a dividend yield of 6.63%, with an annual payout of $6.56 per share [9]. Group 3: Campbell's Company (CPB) - Campbell's stock is trading at 5-year lows, with a forward P/E ratio of around 12x and a dividend yield of 4.25% [11][13]. - The company faces challenges due to potential tariffs on imported vegetables, which could impact its operations [11]. - Analysts have expressed concerns about an "anemic" growth environment, making it difficult for Campbell's to pass on price increases [12]. - Despite five Sell ratings, the stock may have already priced in much of the negative news, presenting a potential reward for investors [13].

A month has gone by since the last earnings report for Campbell's (CPB) . Shares have added about 0.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Campbell due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns out, f ...

The Campbell's Company (CPB) has faced a turbulent few months, with its share price declining 16.8% over the past six months, significantly underperforming the industry’s 6.9% fall. This branded convenience food products company also lagged the broader Zacks Consumer Staples sector’s growth of 0.6% and the S&P 500’s decline of 1.8% in the same period.CPB’s Price Performance vs. Industry, S&P 500 & SectorImage Source: Zacks Investment ResearchClosing the trading session at $39.39 yesterday, Campbell’s share ...

RBC Capital Markets analyst Nik Modi reiterated the Sector Perform rating on Campbell’s Co CPB, lowering the price forecast to $44 from $51.Yesterday, the company reported second-quarter sales growth of 9% to $2.685 billion, missing the analyst consensus estimate of $2.74 billion.For FY25, Campbell sees net sales growth of 6% to 8% (prior view: 9% to 11%). Adjusted EBIT growth of 3% to 5% (previous view: 9% to 11%).Modi suggests that while Campbell’s challenging results and full-year guidance cut were antic ...

Core Insights - Campbell's Company (CPB) reported mixed results for the second quarter of fiscal 2025, with net sales increasing year over year but missing the Zacks Consensus Estimate, while adjusted earnings declined year over year but exceeded expectations [1][3][4] Financial Performance - Adjusted earnings were 74 cents, down 8% year over year, primarily due to increased net interest expenses, although higher adjusted EBIT partially offset this decline [3] - Net sales reached $2,685 million, reflecting a 9% year-over-year growth but falling short of the Zacks Consensus Estimate of $2,738 million, with organic net sales declining by 2% [4] - Adjusted gross profit was $815 million, up from $772 million in the prior-year quarter, but the adjusted gross profit margin contracted by 100 basis points to 30.4% due to various cost pressures [5] Segment Performance - Meals & Beverages segment net sales were $1,679 million, up 21% year over year, driven by the Sovos Brands acquisition, but organic sales declined by 1% [7] - Snacks segment net sales totaled $1,006 million, down 6% year over year, with organic sales declining by 3% due to lower sales in key brands [8] Cash Flow and Capital Management - As of the end of the reported quarter, Campbell's had cash and cash equivalents of $829 million and total debt of $7,675 million, generating $737 million in net cash from operating activities for the first half of the fiscal year [9] - The company paid $227 million in cash dividends and repurchased nearly $56 million in shares year to date, with approximately $205 million remaining under its anti-dilutive share repurchase program [10] Fiscal 2025 Guidance - Campbell updated its fiscal 2025 guidance, now forecasting net sales growth of 6-8%, down from the previous estimate of 9-11%, and organic net sales expected to range from a 2% decline to flat [11] - Adjusted EPS is now projected to decline by 4% to 1%, with a new range of $2.95 to $3.05 compared to the previous forecast of $3.12-$3.22 [12]

The Campbell's Company (NASDAQ:CPB) Q2 2025 Earnings Conference Call March 5, 2025 8:00 AM ET Company Participants Rebecca Gardy - Senior Vice President, Chief Investor Relations Officer Mick Beekhuizen - President and Chief Executive Officer Carrie Anderson - Executive Vice President and Chief Financial Officer Conference Call Participants Andrew Lazar - Barclays Jim Salera - Stephens Ken Goldman - JPMorgan Peter Galbo - Bank of America Robert Moskow - TD Cowen Operator Good morning and welcome to the Camp ...

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For the quarter ended January 2025, Campbell's (CPB) reported revenue of $2.69 billion, up 9.3% over the same period last year. EPS came in at $0.74, compared to $0.80 in the year-ago quarter.The reported revenue represents a surprise of -1.94% over the Zacks Consensus Estimate of $2.74 billion. With the consensus EPS estimate being $0.73, the EPS surprise was +1.37%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their n ...