Campbell Soup (NYSE:CPB) shares ticked higher in the early session today after the food and beverage major delivered a mixed performance for the first quarter. With a 2.3% year-over-year decline, revenue of $2.52 billion came in line with estimates. On the other hand, EPS of $0.91 fared better than expectations by $0.03.
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The quarter was marked by favorable net price realization but a 5% decline in volume/mix for the company. While gross profit declined to $788 million from $834 million, marketing and selling expenses went up by 10% to $222 million.
Further, the company’s cash flow from operations decreased to $174 million from $227 million. Despite these challenges, Campbell reaffirmed its financial outlook for Fiscal Year 2024, with net sales growth anticipated between -0.5% and 1.5%. EPS for the year is expected to land between $3.09 and $3.15. The company expects productivity improvements and moderating inflation to drive modest earnings and margin gains.
Is CPB a Good Investment?
Overall, the Street has a Hold consensus rating on Campbell Soup. Following a nearly 24% drop in the company’s share price over the past year, the average CPB price target of $45.40 points to a 12.5% potential upside in the stock.
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