Campbell Soup Stock Climbs after Positive Earnings Report

Earnings reports for Campbell Soup Co. (CPB) have been released, showing better than expected earnings.

After the encouraging news, the company adjusted its sales expectations for the fiscal 2024 year. Last year, Campbell earned $9.36 billion. The company expects that it will increase that by about 1.5% to earn around $9.5 billion.

That is up from its previous estimates, where the company expected to earn less than the previous year. They anticipated a drop of 0.5%, but they have now adjusted that in line with the new earnings report. The stock price is expected to increase by $3.09-$3.15 as a result.

The current Campbell stock price is $43.34 per share, and it is up 1.19% from the previous day.

The company has estimated it would save $1 billion by the end of 2025’s fiscal year. It says it is still on track to do that.

Campbell’s Banner Year

Campbell is looking at consumer spending habits and expecting them to recover to help boost its sales. The consumer recovery rate could improve later on in 2024, and if that happens, Campbell will likely update its net sales guidance in response to give its stockholders more accurate estimates.

For the year so far, Campbell has managed 80 cents in profit per share. That is partly due to the increased prices Campbell issued, which caused their prices on products across their entire range to increase by 1% over the last quarter. Compared to the previous year, Campbell Soup Co. products rose in price by 14%. Still, the company is raking in the sales and doing better than expected.

There was concern that the new, higher prices would lead to reduced sales, but that did not happen. The company has been able to take advantage of a growing economy that is slowly recovering, led in part by slightly decreasing inflation and increasing hourly wages.

Despite inflation concerns, Campbell has stayed ahead of the curve and offset those costs by increasing its prices and improving its supply chain performance.