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The Campbell's Company (CPB - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2025 earnings on March 5. The Zacks Consensus Estimate for revenues is pegged at $2.74 billion, implying an 11.7% increase from the prior-year quarter’s reported figure. Although the consensus mark for earnings has moved up by a penny in the past 30 days to 73 cents per share, the projection indicates an 8.8% decline from the figure reported in the year-ago quarter. CPB has a trailing four-quarter earnings surprise of 3.7%, on average.
 

Things to Know About CPB’s Q2 Earnings

Campbell’s has been reaping benefits from consistent innovations, effective marketing programs and share trend improvements. It is focused on prioritizing execution and strong collaboration with retail partners to deliver both quality and value. In addition, the company’s Meals & Beverages division continues to aid growth, supported by consistent consumer trust and at-home cooking trends. Our model suggests 1.5% organic sales growth in the segment during the second quarter of fiscal 2025.

On its last earnings call, management stated that it expects to witness a sequential improvement in the fiscal second quarter, driven by robust holiday demand. Key drivers are likely to have been enhanced consumer confidence, normalized pricing and contributions from Sovos Brands.
 

The Campbell's Company Price and EPS Surprise

The Campbell's Company price-eps-surprise | The Campbell's Company Quote

That being said, a continued dynamic consumer environment, characterized by cautious spending habits and evolving preferences, poses a threat. The Snacks division, in particular, is bearing the brunt of these shifts. We expect the segment’s organic sales to decline 1.7% in the to-be-reported quarter. Apart from this, core inflation and ongoing supply-chain cost pressures are headwinds. However, the company is progressing well with its cost-saving efforts, which is likely to have offered some respite.
 

Earnings Whispers for CPB Stock

Our proven model predicts 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 the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Campbell's carries a Zacks Rank #3 and has an Earnings ESP of +2.62%.

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