Campbell Soup (CPB) Q1 Earnings Report Preview: What To Look For

Packaged food company Campbell Soup (NASDAQ:CPB) will be reporting results tomorrow morning. Here's what to expect.

Last quarter Campbell Soup reported revenues of $2.07 billion, up 4.1% year on year, in line with analyst expectations. It was a decent quarter for the company, with a narrow beat of analysts' revenue and EPS estimates.

Is Campbell Soup buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Campbell Soup's revenue to decline 2.2% year on year to $2.52 billion, a deceleration on the 15.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing five downwards revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Campbell Soup's peers in the packaged food segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Flowers Foods delivered top-line growth of 3.5% year on year, missing analyst estimates by 1.2% and Pilgrim's Pride reported revenue decline of 2.4% year on year, exceeding estimates by 1.5%. Flowers Foods traded flat on the results, and Pilgrim's Pride was up 1.2%.

Read our full analysis of Flowers Foods's results here and Pilgrim's Pride's results here.

There has been positive sentiment among investors in the packaged food segment, with the stocks up on average 6.6% over the last month. Campbell Soup is up 0.9% during the same time, and is heading into the earnings with analyst price target of $46.1, compared to share price of $41.1.

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The author has no position in any of the stocks mentioned.