Stocks of Campbell Soup Company (New York Stock Exchange: CPB) fell 1% on Friday. The stock has gained 13% over the past 12 months. The processed food company is expected to report its second-quarter 2023 earnings results on Wednesday, March 8, before the market opens. Here’s what you can expect from your earnings report:
Analysts expect Campbell’s earnings to be $2.45 billion in the second quarter of 2023. This compares to his reported $2.2 billion in the second quarter of 2022.
The consensus target is $0.74 for Q2 2023 EPS and $0.69 for Q2 2022 Adjusted EPS. Adjusted EPS for the first quarter of 2023 increased 15% year-over-year to $1.02.
In the first quarter of 2023, Campbell’s performance benefited from price increases implemented to address inflationary pressures. However, these benefits were partially offset by lower sales volumes. Sales saw double-digit increases in both the Snacks and Meals & Beverages segments, fueled by consumer demand and brand strength.
In an inflationary environment, consumers are eating less outdoors and preparing more meals at home. Campbell’s product portfolio offers consumers several affordable options for preparing meals effortlessly at home. These trends may have benefited the company during the second quarter.
Higher cost inflation and unfavorable volume and product mix weighed on margins in the first quarter, driving gross margin down 30 basis points year-over-year. The company is committed to mitigating these impacts through price increases, supply chain productivity improvements and cost reduction initiatives.
Campbell announced in January that it would consolidate its Snacks division offices in North Carolina and Connecticut into its headquarters in Camden, New Jersey. It has been. Campbell also appointed a new Chief Financial Officer, Carrie Anderson. Updates on these new initiatives and new strategies are areas to watch.
Click here to read Campbell Soup Company’s full Q1 2023 earnings call
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