Campbell Soup Company (NYSE:CPB) Exceeds Earnings Expectations but Faces Revenue Challenges

• Earnings Per Share (EPS) of $0.62 exceeded the Zacks Consensus Estimate, marking an earnings surprise of 8.77%.
• Reported revenue of $2.32 billion for the quarter, missing the estimated $2.70 billion but showing a slight year-over-year increase.
• The company's financial metrics reveal a mixed picture with a price-to-earnings (P/E) ratio of 21.44 and a debt-to-equity ratio of 1.78, indicating significant use of debt.

Campbell Soup Company, trading as NASDAQ:CPB, is a well-known player in the food industry, famous for its canned soups, Pepperidge Farm cookies, and V8 juice. As part of the Zacks Food - Miscellaneous industry, Campbell's competes with other food giants in delivering quality products to consumers. The company has a strong market presence and a diverse product portfolio.

On September 3, 2025, Campbell's reported earnings per share (EPS) of $0.62, exceeding the Zacks Consensus Estimate of $0.57. This resulted in an earnings surprise of 8.77%. However, the EPS was slightly lower than the $0.63 reported in the same quarter last year. Despite this, Campbell's has consistently beaten consensus EPS estimates over the past four quarters.

Campbell's reported revenue of $2.32 billion for the quarter ending in July 2025, which was below the estimated $2.70 billion. This revenue figure, however, was a slight increase from the $2.29 billion reported in the same period last year. Over the past four quarters, Campbell's has only surpassed consensus revenue estimates once, highlighting a challenge in meeting market expectations.

The company's financial metrics provide further insight into its performance. With a price-to-earnings (P/E) ratio of 21.44 and a price-to-sales ratio of 0.95, the market values Campbell's sales and earnings positively. The enterprise value to sales ratio of 1.61 and enterprise value to operating cash flow ratio of 14.22 reflect the company's valuation and cash flow efficiency.

Campbell's debt-to-equity ratio of 1.78 indicates a significant use of debt in its capital structure, while a current ratio of 0.78 suggests a need to improve its ability to cover short-term liabilities. Despite these challenges, the company's earnings yield of 4.67% offers a reasonable return on investment, attracting cost-conscious consumers who prefer cooking at home, as highlighted by the recent rally in Campbell's shares.