PREVIEW: Campbell Soup seen reporting sales increase, EPS decline

Sovos Brands

31/08/2023 10:00

(Repeats buzz from Wednesday with no changes)
    ** Campbell Soup's  CPB.N  shares edge down 0.2% to $42.18
on Weds, ahead of co's fiscal Q4 report due before the bell
Thurs, weeks after co announced deal to beef up its meals and
beverages (M&B) business
    ** CPB on Aug 7 said it would buy Sovos Brands  SOVO.O ,
maker of Rao's premium Italian sauces, for $2.3 bln in cash
    ** Analysts on avg expect CPB to report rev of $2.06 bln, up
nearly 4% yr/yr, and adj EPS of 50 cents vs 56 cents a yr-ago,
per Refinitiv data
    ** Jefferies, which rates CPB "hold", lowered its PT to $46
last week, saying M&B business remains more challenged while
private label still pressuring soup segment
    ** Avg Wall Street rating among 17 analysts covering CPB is
"hold" and recommendation breakdown is 2 "buy," 10 "hold", 4
"sell" and 1 "strong sell" - Refinitiv
    ** Median PT of $47 down from $54 three months ago
    ** CPB's stock down ~26% YTD vs ~7% decline in S&P 500
Packaged Food & Meats index  .SPLRCFOOD  and 1.5% drop for S&P
500 Consumer Staples sector  .SPLRCS 

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))