Shares of packaged food company Campbell Soup (NASDAQ:CPB) jumped 6.2% in the mid-day session after the company reported third quarter earnings with revenue in line with analysts' expectations. EPS came in ahead of expectations. Management expects some of its ongoing initiatives to fuel "sequential improvement over the course of the year, generating momentum in terms of revenue, volumes, market share and profit margins, particularly as we head into the second half of fiscal '24." It added that the business has achieved $895 million of total savings under its multi-year cost savings program and remains on track to deliver savings of $1 billion by the end of fiscal 2025.
These results are encouraging, especially in light of the challenges faced by retailers in the current earnings season. It's reassuring to note that management reiterated the full-year guidance across the board, with EPS slightly surpassing analysts' expectations. Additionally, it highlighted that the potential gains from the impending acquisition of Sovos Brands (expected to close in calendar year '24) are not factored into the current fiscal '24 outlook. Overall, it was a strong quarter for the company with multiple promising aspects.
Is now the time to buy Campbell Soup? Access our full analysis report here, it's free.
What is the market telling us:
Campbell Soup's shares are not very volatile than the market average and over the last year have had only 2 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Campbell Soup is down 23.1% since the beginning of the year, and at $43.25 per share it is trading 24.8% below its 52-week high of $57.55 from December 2022. Investors who bought $1,000 worth of Campbell Soup's shares 5 years ago would now be looking at an investment worth $1,131.
Do you want to know what moves the stocks you care about? Add them to your StockStory watchlist and every time a stock we cover moves more than 5%, we provide you with a timely explanation straight to your inbox. It's free and will only take you a second.