Campbell Soup Company ($CPB) Earnings (Q4 FY22)

 Campbell Soup Company ($CPB) Earnings and Opinion:


Campbell Soup Company is a company in the Consumer Defensive sector and operates in the Packaged Foods industry. The company manufactures and markets foods and beverage products in the United States and internationally. Campbell Soup Company was founded in 1869 and is currently headquartered in Camden, New Jersey. The company made its debut on the stock market in 1954.

Campbell Soup Company Earnings Results:

  • Revenues of $1.987B missing expectations of $1.99B
  • Gross Profit of $622M beating expectations of $615M
  • EBIT of $269M missing expectations of $272M
  • Adjusted EPS of $0.56 in line with expectations of $0.56
  • Guidance beat for Revenues and EBIT and missed on Adjusted EPS
Opinion:
Campbell Soup Company is currently declining a little bit, after reporting earnings before the market opened this morning. The company had a mixed earnings report, with most metrics coming in right around expectations. The decline can be credited to the profit outlook. The company is expecting margins to slim down a little bit and profits to be cut a little bit. With the current supply chain issues and rising costs, this has become a common theme among retail businesses. Profits are down from last year and its just because margins have become slimmer and slimmer as cost of goods sold is on the rise. As far as valuation goes, the P/E ratio sits around 15, which is a solid level. The P/S ratio sits at 1.68, which is a little bit under average. Growth has seen a decline this year, but looks to be back in the positive segment in the next few years to come. The current ratio sits at 0.69, which is a bad sign. Even worse, it has $196M in cash compared to $4.75B in debt. They have dug themselves in a hole and have a steep climb to get out of it. In my opinion, its the balance sheet metrics that turn me away from this one. Campbells has a long history of being a good business, however, I just think theres better options out there to explore. I am going to pass on this one and keep an eye on if they can climb out of the debt hole.


*Information from Yahoo Finance, Consensus Gurus, CMLVIZ

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