Campbell's Q3 Earnings Coming Up: What Investors Need to Understand

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]