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华尔街日报The 5 Most Interesting Analyst Questions From Campbell's’s Q3 Earnings Call
Campbell's third quarter results saw revenue come in above Wall Street expectations, but the company faced a year-over-year sales decline as shifting consumer habits and cost pressures weighed on performance. Management pointed to ongoing softness in snack volumes and selective price increases as key drivers, with CEO Mick Beekhuyzen noting that "cost increases and top line headwinds" were not fully offset by recent productivity and pricing actions. While the company's core brands maintained stable market share, the impact of tariffs and inflation continued to present challenges for both the meals and beverages and snacks segments.
Is now the time to buy CPB? Find out in our full research report (it’s free for active Edge members).
Campbell's (CPB) Q3 CY2025 Highlights:
- Revenue: $2.68 billion vs analyst estimates of $2.65 billion (3.4% year-on-year decline, 0.9% beat)
- Adjusted EPS: $0.77 vs analyst estimates of $0.73 (5% beat)
- Adjusted EBITDA: $482 million vs analyst estimates of $479.2 million (18% margin, 0.6% beat)
- Management reiterated its full-year Adjusted EPS guidance of $2.47 at the midpoint
- Operating Margin: 12.6%, in line with the same quarter last year
- Organic Revenue fell 1% year on year vs analyst estimates of 2.4% declines (136.7 basis point beat)
- Sales Volumes fell 3% year on year (0% in the same quarter last year)
- Market Capitalization: $8.43 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Campbell's’s Q3 Earnings Call
- Tom Palmer (JPMorgan) asked for details about the La Regina acquisition timing and rationale. CEO Mick Beekhuyzen and CFO Todd Kunfer explained the deal secures high-quality supply and supports Rao’s growth, with consolidation benefits flowing through margins and flexibility for future investment.
- Andrew Lazar (Barclays) questioned the conviction behind expected Snacks segment stabilization. Beekhuyzen acknowledged persistent category pressure but cited easier comparisons and renewed focus on brand innovation as reasons for potential improvement in the second half.
- David Palmer (ISI) inquired about the influence of broader megatrends, like health and wellness and GLP-1 medication usage, on salty snacks. Beekhuyzen responded that while snacking is evolving, Campbell’s brands are positioned to win by aligning with premiumization and wellness trends.
- Robert Moskow (TD Cowen) asked about balancing soup price increases with the need to maintain value. Beekhuyzen noted selective pricing was necessary to address cost inflation but recognized the importance of affordability, especially in ready-to-serve soups amid competitive responses.
- Chris Carey (Wells Fargo) pressed on margin outlook and the prospects for improvement. Kunfer stated that margins were in line with internal expectations, with improvement expected as cost-saving efforts and lapping of tariff impacts take effect later in the year.
Catalysts in Upcoming Quarters
In the coming quarters, our analyst team will closely track (1) the impact of heightened marketing and innovation on Goldfish and other core brands, (2) the trajectory of gross margin recovery as cost-saving measures and productivity initiatives scale, and (3) the integration progress and strategic benefits from the La Regina acquisition. We will also monitor how Campbell’s manages competitive pricing dynamics, particularly within soup and snacks.
Campbell's currently trades at $28.30, down from $30.04 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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