Earnings Outlook for Fiscal 2024
Campbell Soup stock is on the rise following the release of their earnings outlook for fiscal 2024. The packaged foods company expects adjusted earnings to range between $3.09 and $3.15 per share, surpassing Wall Street's estimates of $3.06 per share (according to FactSet).
First Quarter Results
For the fiscal first quarter, Campbell reported earnings of 91 cents per share, exceeding expectations of 87 cents per share. However, this is a decline from last year's earnings of $1.02 per share. While revenue for this quarter matched estimates at $2.52 billion, it is lower than the previous year's $2.58 billion.
CEO's Comments
"Our first-quarter results were in line with our expectations, as we continue to effectively navigate the current consumer landscape," stated Chief Executive Mark Clouse in the earnings release.
Volume Declines and Price Increases
Despite the positive earnings results, Campbell experienced a 5% decrease in volume compared to the prior year. This can be attributed to increased competition from private label brands and the impact of inflation on consumer spending. It is expected that volume declines will continue into the first half of 2024, with a potential improvement in the latter half of the year. To counterbalance this decline, Campbell implemented a 3% price increase compared to the previous year.
Stock Performance
Shares of Campbell Soup were up by 1.4% in premarket trading on Wednesday. Year-to-date, the stock has seen a decrease of 29%.
