JOLTS Job Openings (Jun) 7.44M vs 7.5M Expected
On Wednesday, Stifel analysts maintained their Hold rating on Campbell Soup stock (NASDAQ:CPB) with a steady price target of $40.00. The company, which has maintained dividend payments for 55 consecutive years according to InvestingPro, currently trades at a P/E ratio of 21.3x. The firm’s assessment followed Campbell’s release of its second quarter 2025 earnings, which showed a slight decline in performance. The company reported earnings per share (EPS) of $0.74, an 8% decrease year-over-year, yet slightly surpassing Stifel’s estimate by $0.01 and the consensus by $0.02. Despite this, organic sales saw a 2% decline, attributed to reduced pricing and unchanged volume/mix. InvestingPro data shows the company maintains strong profitability, with revenue growth of 6.34% over the last twelve months.
The contraction in gross margin was noted as being more significant than anticipated, dropping by 100 basis points during the quarter. According to InvestingPro data, the company’s current gross profit margin stands at 31.33%. This dip in revenue and gross profit, however, was somewhat mitigated by a decrease in interest expenses compared to Stifel’s projections. InvestingPro’s comprehensive analysis indicates the stock is currently fairly valued, with additional insights available in the Pro Research Report.
Campbell Soup also revised its full-year 2025 outlook, now expecting organic sales to range between a 2% decline to remaining flat, a downgrade from the previously forecasted range of flat to a 2% increase. Additionally, the company anticipates that EPS will fall by 4% to 1%, adjusting downward from the earlier expectation of a 1% to 4% rise. This updated guidance reflects the absence of anticipated sequential revenue growth and tempered expectations for the latter half of the year.
Stifel’s continued Hold stance and $40 price target come in light of these revised projections. The analysts suggest that the guidance cut indicates a more cautious outlook for the company’s performance moving forward.
Investors and interested parties were able to gain further insights into the company’s performance and expectations during the conference call held on Wednesday at 8 am ET. Access to the call was available through the provided phone numbers, with the international line being 646-307-1963 and the password for entry being 3292637. For deeper analysis of Campbell Soup’s financial health and performance metrics, investors can access the detailed Pro Research Report available on InvestingPro, which provides comprehensive insights across multiple financial dimensions.
In other recent news, Campbell Soup Company (NYSE:CPB) announced its second quarter 2025 earnings, reporting an adjusted earnings per share (EPS) of $0.74, slightly above the forecast of $0.73. However, the company’s revenue fell short of expectations, totaling $2.68 billion compared to the projected $2.74 billion. The revenue miss has led Campbell Soup to revise its full-year guidance, now anticipating flat to a 2% decline in organic net sales. The company also increased its cost savings target for the year to $120 million. Meanwhile, the acquisition of Sovos contributed to a 9% increase in net sales, though organic net sales decreased by 2%. Campbell Soup’s adjusted EBIT grew by 2%, reflecting a focus on operational efficiencies. Analysts have raised concerns about the company’s performance, particularly in the Snacks division, which did not recover as anticipated. Despite these challenges, Campbell Soup remains committed to investing in its brand portfolio and accelerating cost-saving initiatives.
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