What to Expect When Campbell Soup (CPB) Reports Earnings Tomorrow

NEW YORK (TheStreet) -- Campbell Soup Co. (CPB) will report its 2015 third quarter earnings results before the market open on Friday morning. Analysts are expecting the branded convenience food products manufacturer and marketer to post a year-over-year decline in earnings and revenue for the most recent quarter.

Analysts polled by Thomson Reuters have forecast that Campbell Soup will report earnings of 52 cents per share on revenue of $1.93 billion for the quarter ended April 2015.

Last year, the company said its adjusted earnings were 62 cents per share and net sales came in at $1.97 billion for the 2014 third quarter.

Shares of Campbell Soup closed up by 0.49% to $46.93 on Thursday afternoon.

Camden, NJ.-based Campbell Soup sells food and beverage products under a number of brands including Campbell's, Pepperidge Farm, Prego, V8, and Swanson.

Separately, TheStreet Ratings team rates CAMPBELL SOUP CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate CAMPBELL SOUP CO (CPB) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market, CAMPBELL SOUP CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $396.00 million or 21.84% when compared to the same quarter last year. In addition, CAMPBELL SOUP CO has also modestly surpassed the industry average cash flow growth rate of 21.40%.
  • CAMPBELL SOUP CO's earnings per share declined by 10.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CAMPBELL SOUP CO increased its bottom line by earning $2.32 versus $2.16 in the prior year. This year, the market expects an improvement in earnings ($2.35 versus $2.32).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.8%. Since the same quarter one year prior, revenues slightly dropped by 2.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 35.90% is the gross profit margin for CAMPBELL SOUP CO which we consider to be strong. Regardless of CPB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.26% trails the industry average.
  • You can view the full analysis from the report here: CPB Ratings Report

More from Markets

Dow Tumbles as Trump Calls Off North Korea Summit

Dow Tumbles as Trump Calls Off North Korea Summit

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Automakers Slump as Trump Tariffs Threaten Both Manufacturers and Consumers

Automakers Slump as Trump Tariffs Threaten Both Manufacturers and Consumers

Jim Cramer: Does Saudi Arabia Think Oil Prices Are Too High?

Jim Cramer: Does Saudi Arabia Think Oil Prices Are Too High?

Stocks Could Easily Crater Into Memorial Day Weekend

Stocks Could Easily Crater Into Memorial Day Weekend