Projected Earnings: Analysts forecast an EPS of $0.7 and revenue of approximately $2.35 billion for the upcoming quarter.
Historical Performance: Campbell has a history of exceeding earnings expectations, with an average earnings surprise of 4.25% over the past two quarters.
Financial Health: Key financial ratios such as a P/E ratio of 17.20, P/S ratio of 1.42, and a current ratio of 1.01 highlight the company’s valuation and liquidity.
Campbell Soup Company (NYSE:CPB), a renowned name in the food industry, is set to release its quarterly earnings on Wednesday, June 5, 2024, before the market opens. Known for its wide range of products, including canned soups, Pepperidge Farm cookies, and V8 juices, Campbell operates within the competitive Zacks Food-Miscellaneous industry. As the earnings date approaches, Wall Street analysts have forecast earnings per share (EPS) of $0.7 and revenue expectations of approximately $2.35 billion for the quarter.
Investors and analysts are closely monitoring Campbell’s performance, especially given its history of exceeding earnings expectations. The company has a notable track record, with an average earnings surprise of 4.25% over the past two quarters. This consistent outperformance, including earnings of $0.80 per share in its most recent quarter against a consensus estimate of $0.77 and $0.91 per share the quarter before that, versus an expected $0.87, sets a promising stage for the upcoming earnings announcement.
Financial ratios provide further insight into Campbell’s valuation and financial health. With a price-to-earnings (P/E) ratio of 17.20, investors show their willingness to pay $17.20 for every dollar of CPB’s earnings, indicating expectations of future growth. The price-to-sales (P/S) ratio at 1.42 and the enterprise value-to-sales (EV/Sales) ratio of 1.92 reflect the company’s value from sales perspectives, both in terms of market capitalization and adjusted for debt. Additionally, the enterprise value to operating cash flow (EV/OCF) ratio of 16.28 highlights the company’s valuation in relation to its operating cash flows, a critical measure of financial efficiency.
Campbell’s earnings yield of about 5.81% offers an attractive proposition to investors, showcasing the earnings generated for each dollar invested. The debt-to-equity (D/E) ratio of 1.19 indicates a balanced approach to financing its assets, combining both debt and equity. The current ratio of 1.01 suggests that the company is well-positioned to cover its short-term liabilities with its short-term assets, an important indicator of liquidity.
As Campbell Soup Company prepares to unveil its quarterly earnings, the combination of its strong earnings track record, solid financial ratios, and the anticipation built around its projected EPS and revenue figures positions CPB as a company to watch in the upcoming earnings season.