Higher prices boost earnings, but sales growth slows
- Campbell Soup beat earnings and sales estimates
- Higher prices helped the brand in the latest quarter
- Top-line sales growth is currently at the lower end of the range
- Campbell Soup stock fell 0.9% in premarket trading
- Prices on products rose by 1% in the latest quarter
- Volume/mix fell 2% from a year ago
- Adjusted gross profit margin increased by 70 basis points
- Kraft Heinz also raised prices for consumers
- Campbell’s kept its fiscal-year 2024 target for earnings unchanged
- Analysts were looking for $3.07 per share
Campbell Soup reported better-than-expected earnings and sales in the latest quarter, thanks to higher prices. However, the company’s top-line sales growth is currently at the lower end of the range. As a result, Campbell Soup stock fell by 0.9% in premarket trading. Prices on products rose by 1% in the quarter, but volume/mix declined by 2% compared to the previous year. Despite these challenges, the company’s adjusted gross profit margin increased by 70 basis points. Kraft Heinz, another packaged food company, also raised prices but experienced a decline in volume/mix. Campbell’s maintained its earnings target for fiscal-year 2024, which analysts were slightly higher than expected at $3.07 per share.
Factuality Level: 7
Factuality Justification: The article provides specific details about Campbell Soup’s financial performance, including earnings, sales, and profit margins. It also includes comparisons with analyst expectations and mentions another company, Kraft Heinz, for context. However, the article lacks broader context about the overall market trends or potential reasons behind the price increases and volume/mix decline.
Noise Level: 3
Noise Justification: The article provides relevant information about Campbell Soup’s financial performance, including earnings, sales, and price increases. It includes specific data points and comparisons with analyst expectations. However, the article lacks in-depth analysis of the long-term trends or consequences of the company’s decisions. It stays on topic and supports its claims with evidence and data.
Financial Relevance: Yes
Financial Markets Impacted: Campbell Soup
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses Campbell Soup’s earnings and sales performance. It mentions that higher prices helped the brand in the latest quarter, and also provides information on the company’s stock performance and analyst expectations. However, there is no mention of an extreme event or its impact.
Public Companies: Campbell Soup (CPB), Kraft Heinz (KHC)
Key People: Justin Sullivan (Not specified)
Reported publicly:
www.marketwatch.com 
