Q3 Earnings Roundup: Campbell Soup (NYSE:CPB) And The Rest Of The Packaged Food Segment
Wrapping up Q3 earnings, we look at the numbers and key takeaways for the packaged food stocks, including Campbell Soup (NYSE:CPB) and its peers.
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods, prepared meals, or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences.The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 29 packaged food stocks we track reported a slower Q3; on average, revenues missed analyst consensus estimates by 2.2% while next quarter's revenue guidance was 10.9% below consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but packaged food stocks held their ground better than others, with the share prices up 9.1% on average since the previous earnings results.
Campbell Soup (NYSE:CPB)
With its iconic canned soup as its cornerstone product, Campbell Soup (NASDAQ:CPB) is a packaged food company with an illustrious portfolio of brands.
Campbell Soup reported revenues of $2.52 billion, down 2.2% year on year, inline with analyst expectations. It was a slower quarter for the company, with a miss of analysts' organic revenue growth estimates and a miss of analysts' operating margin estimates.
The stock is up 7.6% since the results and currently trades at $43.49.
Read our full report on Campbell Soup here, it's free.
Best Q3: Lamb Weston (NYSE:LW)
Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Lamb Weston reported revenues of $1.73 billion, up 35.7% year on year, outperforming analyst expectations by 1.9%.It was a good quarter for the company, with a decent beat of analysts' revenue estimates.
Lamb Weston pulled off the fastest revenue growth among its peers. The stock is up 2.6% since the results and currently trades at $107.64.
Is now the time to buy Lamb Weston? Access our full analysis of the earnings results here, it's free.
Slowest Q3: Cal-Maine (NASDAQ:CALM)
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.
Cal-Maine reported revenues of $523.2 million, down 34.7% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with a miss of analysts' operating margin estimates.
Cal-Maine had the slowest revenue growth in the group. The stock is down 1.5% since the results and currently trades at $54.04.
Read our full analysis of Cal-Maine's results here.
Calavo Growers (NASDAQ:CVGW)
A trailblazer in the avocado industry, Calavo Growers (NASDAQGS:CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.
Calavo Growers reported revenues of $259.9 million, down 24% year on year, falling short of analyst expectations by 8.4%. It was a decent quarter for the company, with an impressive beat of analysts' gross margin estimates and a solid beat of analysts' operating margin estimates. On the other hand, its revenue unfortunately missed analysts' expectations.
The stock is down 8.4% since the results and currently trades at $28.68.
Read our full, actionable report on Calavo Growers here, it's free.
Simply Good Foods (NASDAQ:SMPL)
Best known for its Atkins brand that was inspired by the popular diet of the same name, Simply Good Foods (NASDAQ:SMPL) is a packaged food company whose offerings help customers achieve their healthy eating or weight loss goals.
Simply Good Foods reported revenues of $308.7 million, up 2.6% year on year, falling short of analyst expectations by 0.2%. It was a mixed quarter for the company, with a miss of analysts' operating margin estimates, but adjusted EBITDA and EPS beat.
The stock is up 2.2% since the results and currently trades at $40.51.
Read our full, actionable report on Simply Good Foods here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
The author has no position in any of the stocks mentioned
