Core Insights - The Campbell's Company (NASDAQ:CPB) is identified as one of the most oversold stocks in the S&P 500 as it heads into 2026 [1] Financial Performance - For Q1 of fiscal 2026, net sales were reported at $2.68 billion, a decline of 3% year-over-year, aligning closely with Wall Street's expectations of $2.66 billion [2] - The adjusted EPS for the quarter was $0.77, surpassing estimates by four cents [2] - Gross profit fell from $867 million to $792 million, with the adjusted gross profit margin decreasing by 1.5% year-over-year to 29.9%, attributed to inflation, rising supply chain costs, and tariffs [3] Guidance and Market Sentiment - The company reaffirmed its full-year guidance, expecting net sales to remain flat and annual adjusted EPS to be in the range of $2.40-$2.55 [3] - Industry experts suggest that the maintenance of the forecast reflects broader challenges in the packaged food sector, as consumers are shifting towards cheaper private label alternatives due to rising prices [4] Analyst Reactions - Following the earnings call, several research firms, including Bernstein, Stifel, RBC Capital, and UBS, reduced their price targets for the stock [5] - As of December 10, analysts have a consensus Hold rating for Campbell, with a one-year average share price target of $32.44, indicating a potential upside of 14% [5] - The stock has decreased by 32% year-to-date [5]

Core Insights - Campbell's Company (CPB) reported first-quarter fiscal 2026 results, with net sales missing estimates while adjusted earnings per share (EPS) exceeded expectations, although both metrics declined year over year [1][10]. Financial Performance - Adjusted EPS was 77 cents, down 13% year over year, primarily due to lower adjusted earnings before interest and taxes (EBIT), but it surpassed the Zacks Consensus Estimate of 73 cents [2]. - Net sales totaled $2,677 million, a decrease of 3% year over year, missing the Zacks Consensus Estimate of $2,659 million. Organic net sales fell 1% to $2.7 billion, driven by lower volume/mix, partially offset by favorable pricing [3]. - Adjusted gross profit declined to $801 million from $871 million, missing the estimate of $823.1 million. The adjusted gross profit margin decreased by 150 basis points to 29.9%, attributed to cost inflation and supply-chain expenses [4]. Expense Management - Adjusted marketing and selling expenses decreased by 2% to $237 million, mainly due to lower selling expenses and cost-saving initiatives, despite increased marketing spend [5]. - Adjusted administrative expenses fell by 9% to $150 million, reflecting benefits from cost savings and lower incentive compensation [5]. Segment Performance - Meals & Beverages segment net sales decreased by 4% to $1,665 million, with organic net sales declining by 2% when excluding the noosa divestiture, primarily due to lower sales in U.S. soup and other products [7]. - Snacks segment net sales decreased by 2% to $1,012 million, with organic net sales down 1% when excluding the Pop Secret divestiture, driven by declines in various snack products [8]. Other Financial Metrics - As of the end of the reported quarter, Campbell's had cash and cash equivalents of $168 million and total debt of $6,972 million. Cash flow from operations was $224 million, with capital expenditures of $127 million [9]. - The company paid $120 million in cash dividends and repurchased nearly $24 million in shares during the fiscal first quarter [11]. Strategic Developments - Campbell's will acquire a 49% stake in La Regina for $286 million, enhancing their partnership and supporting future innovation, expected to close in the second half of fiscal 2026 [12]. - The company reaffirmed its full-year fiscal 2026 guidance, expecting organic net sales to range from a 1% decline to a 1% rise year over year, with adjusted EBIT estimated to decrease by 9-13% and adjusted EPS expected to decline by 12-18% [13].

Financial Data and Key Metrics Changes - Organic net sales decreased by 1%, primarily due to a 2% decline in consumption, with retailers building inventory in snacks ahead of promotional activities [7][8] - Adjusted EBIT decreased by 11% to $383 million, and adjusted EPS decreased by 13% to $0.77 [29] - Net sales were $2.7 billion, a decrease of 3%, with organic net sales down 1% due to unfavorable volume and mix [28][29] Business Line Data and Key Metrics Changes - Meals and Beverages segment reported a 4% decrease in net sales, with organic net sales down 2%, driven by declines in U.S. soup and other products [32] - Snacks segment reported a 2% decrease in net sales, with organic net sales down 1%, primarily due to lower sales in Snyder's of Hanover pretzels and Cape Cod potato chips [34] - Leadership brands in meals and beverages held or grew share for the ninth consecutive quarter, while snacks saw mixed performance with some brands gaining share [11][12] Market Data and Key Metrics Changes - Total in-market consumption was down 2%, but leadership brands' consumption was down only 1%, maintaining share for eight consecutive quarters [8][11] - Broth consumption grew for the ninth straight quarter, driven by increased household penetration and buy rates [13] - The overall soup portfolio lagged the category on share, with cooking varieties performing well while eating soups faced pressure [12][14] Company Strategy and Development Direction - The company is focused on mitigating cost pressures while maintaining marketing support for brands, emphasizing consumer-led innovation and brand activations [9][10] - The acquisition of a 49% interest in La Regina is aimed at securing high-quality ingredients for Rao's sauces and enhancing growth potential [16][17] - The company is committed to crafting high-quality food at the right value and investing in omnichannel execution and innovation [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a dynamic operating environment and reiterated fiscal 2026 guidance, including expected tariff impacts [9][36] - The company is focused on evolving consumer needs and maintaining strong connections with consumers through brand activations and innovation [10][63] - Management expressed confidence in the strength of leadership brands and the ability to navigate short-term challenges while building long-term shareholder value [37] Other Important Information - The company achieved approximately $15 million in new cost savings, bringing total savings to $160 million towards a target of $375 million by fiscal 2028 [30] - The gross impact of tariffs on Q1 adjusted EPS was $0.14, with a net impact of $0.04 [32] Q&A Session Summary Question: Details on the La Regina acquisition - The acquisition supports the growth of Rao's by securing supply and enhancing the partnership with the Romano family, with a purchase price of $286 million for 49% [39][41][42] Question: Conviction in snack segment stabilization - Management expects stabilization in the snack segment in the second half of the fiscal year, with ongoing focus on innovation and value [49][51][55] Question: Impact of mega trends on salty snacks - Management is focused on evolving consumer needs and believes premiumization and health trends will benefit their brands, despite some competitive pressures [59][63] Question: Pricing strategy for eating soups - Management is aware of the need to balance pricing with value, particularly in the eating soup category, and is taking selective actions to remain competitive [66][70] Question: Implications of La Regina deal on top-line momentum - The acquisition is expected to enhance margins and provide flexibility for investments in innovation and strategy, supporting top-line growth [75][78][80]

Earnings Presentation Q1 Fiscal 2026 1 Rebecca Gardy Chief Investor Relations Officer Welcome Today's Agenda Mick Beekhuizen Chief Executive Officer Business Update Todd Cunfer Chief Financial Officer Financial Results and Outlook 2 Forward-looking Statements Safe Harbor Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements reflect our current expectations regarding our future results o ...

Core Insights - Amazon is experimenting with a new concept at Whole Foods to enhance the shopping experience by integrating name-brand items alongside organic products [2][4] - A 10,000-square-foot micro fulfillment center has been established within Whole Foods to allow customers to order non-organic items via QR codes and pick them up in-store [3][4] - Amazon aims to retain customers by providing a one-stop shopping experience, reducing the likelihood of them shopping at competing stores [4] Company Strategy - Amazon's grocery business, excluding Whole Foods and Amazon Fresh, generated over $100 billion in gross sales over the past year, positioning it among the top three grocery retailers in the U.S. [6] - The company is expanding Whole Foods and has launched smaller store formats for urban areas, indicating a strategic move to capture more market share [6][7] - Amazon's broader strategy includes competing with major players like Walmart and enhancing its physical store presence through Amazon Fresh and Amazon Go [5]

Core Insights - The Campbell's Company (CPB) reported third-quarter fiscal 2025 results, with earnings and net sales exceeding Zacks Consensus Estimates, although quarterly earnings declined year over year while net sales increased [1][3] Financial Performance - Adjusted earnings were 73 cents, down 3% year over year, but beat the Zacks Consensus Estimate of 65 cents [3] - Net sales reached $2,475 million, a 4% increase year over year, surpassing the Zacks Consensus Estimate of $2,437.3 million, driven by the Sovos Brands acquisition [3] - Organic net sales rose 1%, primarily due to a 2% positive volume/mix impact, offset by planned lower net pricing [3] Profitability Metrics - Adjusted gross profit increased to $745 million from $740 million, while the adjusted gross profit margin declined by 110 basis points to 30.1% due to cost inflation and supply-chain expenses [4] - Adjusted marketing and selling expenses rose 5% to $207 million, while adjusted administrative expenses declined 4% to $150 million [5] - Adjusted EBIT increased 2% to $362 million [5] Segment Performance - Meals & Beverages segment net sales reached $1,463 million, up 15% year over year, with organic net sales growing 6% [6] - Snacks segment net sales totaled $1,012 million, down 8% year over year, with organic net sales down 5% primarily due to decreased sales of various snack products [7] Guidance and Outlook - Campbell's reaffirmed its full-year fiscal 2025 guidance, projecting net sales growth of 6-8% and adjusted EBIT growth of 3-5% [2][13] - Adjusted EPS is expected to decline 4-1%, ranging from $2.95 to $3.05 compared to $3.08 reported in fiscal 2024 [13] - The company estimates an additional headwind of three to five cents per share to its fiscal 2025 adjusted EPS due to current tariff actions [14]

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]