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Shelf-Stable Food Stocks Q1 Results: Benchmarking Campbell Soup (NYSE:CPB)


Anthony Lee /
2024/06/20 6:16 am EDT

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at shelf-stable food stocks, starting with Campbell Soup (NYSE:CPB).

As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.

The 21 shelf-stable food stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 0.5%. while next quarter's revenue guidance was 1.6% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the shelf-stable food stocks have fared somewhat better than others, they collectively declined, with share prices falling 3% on average since the previous earnings results.

Campbell Soup (NYSE:CPB)

With its iconic canned soup as its cornerstone product, Campbell Soup (NASDAQ:CPB) is a packaged food company with an illustrious portfolio of brands.

Campbell Soup reported revenues of $2.37 billion, up 6.3% year on year, in line with analysts' expectations. It was an ok quarter for the company, with an impressive beat of analysts' organic revenue growth estimates but a miss of analysts' operating margin estimates.

Campbell Soup Total Revenue

The stock is down 0.5% since the results and currently trades at $44.01.

Is now the time to buy Campbell Soup? Access our full analysis of the earnings results here, it's free.

Best Q1: Hershey (NYSE:HSY)

Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE:HSY) is an iconic company known for its chocolate products.

Hershey reported revenues of $3.25 billion, up 8.9% year on year, outperforming analysts' expectations by 4.5%. It was a stunning quarter for the company, with an impressive beat of analysts' gross margin estimates.

Hershey Total Revenue

The stock is down 6.6% since the results and currently trades at $182.92.

Is now the time to buy Hershey? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Lamb Weston (NYSE:LW)

Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes.

Lamb Weston reported revenues of $1.46 billion, up 16.3% year on year, falling short of analysts' expectations by 11.8%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and a miss of analysts' operating margin estimates.

Lamb Weston had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is down 16% since the results and currently trades at $84.9.

Read our full analysis of Lamb Weston's results here.

Post (NYSE:POST)

Founded in 1895, Post (NYSE:POST) is a packaged food company known for its namesake breakfast cereal and healthier-for-you snacks.

Post reported revenues of $2.00 billion, up 23.4% year on year, falling short of analysts' expectations by 1.5%. It was a solid quarter for the company, with an impressive beat of analysts' gross margin estimates and a decent beat of analysts' earnings estimates.

The stock is down 2.7% since the results and currently trades at $101.99.

Read our full, actionable report on Post here, it's free.

Hain Celestial (NASDAQ:HAIN)

Sold in over 75 countries around the world, Hain Celestial (NASDAQ:HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.

Hain Celestial reported revenues of $438.4 million, down 3.7% year on year, falling short of analysts' expectations by 5.4%. It was a weak quarter for the company, with a miss of analysts' organic revenue growth estimates.

The stock is up 4.8% since the results and currently trades at $6.96.

Read our full, actionable report on Hain Celestial here, it's free.

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