The Campbell's Company CPB is likely to witness a top and bottom-line decline when it reports fourth-quarter fiscal 2026 earnings on Sept. 3. The Zacks Consensus Estimate for revenues is pegged at $2.15 billion, indicating a decrease of 7.3% from the prior-year quarter’s reported figure.
The consensus mark for earnings has remained unchanged over the past 30 days at 40 cents a share, which implies a decline of 35.5% from the figure reported in the year-ago period. CPB has a trailing four-quarter earnings surprise of about 2%, on average.
The Campbell's Company Price, Consensus and EPS Surprise
The Campbell's Company price-consensus-eps-surprise-chart | The Campbell's Company Quote
Factors Likely to Influence CPB’s Upcoming Results
Campbell’s fiscal fourth-quarter performance is likely to have remained under pressure, reflecting continued weakness in its Snacks business. During the fiscal third-quarter earnings discussion, management highlighted weak consumption across salty snacks, amid a competitive environment and pressure on consumer spending. Although the company has been tightening assortments, sharpening price-pack architecture and improving trade efficiency, these initiatives were still in the early stages and might have limited the pace of sales recovery. Our model suggests a 4% volume decline and a 10.5% revenue decline for the Snacks segment in the fiscal fourth quarter.
Margin performance is also likely to have remained under pressure. Tariffs, input-cost inflation, logistics expenses and unfavorable volume leverage have weighed on profitability. Increased promotional support and efforts to strengthen competitiveness across key categories might also have exerted pressure on margins. Nevertheless, supply-chain productivity improvements and cost-saving initiatives are likely to have provided some offset. We expect the adjusted gross margin to contract 200 basis points to 28.6% in the fiscal fourth quarter.
However, Campbell’s Meals & Beverages segment is likely to have remained resilient, supported by durable at-home cooking trends and strength across key brands. The summer launch of Campbell’s Condensed Sauces may also have aided demand by tapping consumers’ interest in convenient at-home meal preparation and flavor exploration.
Earnings Whispers for CPB
Our proven model doesn’t conclusively predict an earnings beat for Campbell's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Campbell's carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -4.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The Chefs' Warehouse, Inc. CHEF currently has an Earnings ESP of +3.02% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $1.13 billion, indicating a 10.4% rise from the figure reported in the prior-year quarter. The consensus estimate for Chefs' Warehouse’s earnings is pegged at 61 cents per share, implying 22% growth from the year-ago quarter. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Mondelez International, Inc. MDLZ currently has an Earnings ESP of +0.39% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $9.97 billion, which indicates a 2.4% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Mondelez’s upcoming quarter’s EPS is pegged at 72 cents, which declined 1.4% from the year-ago period figure. MDLZ delivered a trailing four-quarter earnings surprise of 5.8%, on average.
Altria Group, Inc. MO currently has an Earnings ESP of +0.37% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $5.33 billion, which indicates an increase of 1.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Altria’s upcoming quarter’s earnings per share is pegged at $1.50, which indicates a 3.5% growth from the figure reported in the prior-year quarter. MO delivered a trailing four-quarter earnings surprise of 1.3%, on average.
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The Campbell's Company (CPB): Free Stock Analysis Report
Altria Group, Inc. (MO): Free Stock Analysis Report
Mondelez International, Inc. (MDLZ): Free Stock Analysis Report
The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).