Companies and Brands
Campbell Soup Opens Up a Can on Q1 Earnings
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When Campbell Soup Co. (NYSE: CPB) reported its fiscal third-quarter financial results before the markets opened on Tuesday, the company said that it had $0.56 in earnings per share (EPS) and $2.39 billion in revenue. That compared with consensus estimates of $0.47 in EPS and $2.36 billion in revenue, as well as the $0.70 per share and $2.12 billion posted in the same period of last year.
During the most recent quarter, sales from continuing operations increased 16% to $2.2 billion, reflecting a 17-point benefit from the acquisition of Snyder’s-Lance, which was completed in late-March. Organic sales were comparable to the prior year as declines in Meals and Beverages offset gains in Global Biscuits and Snacks.
In terms of discontinued operations, sales decreased 15% to $210 million driven primarily by declines in refrigerated soup, reflecting the previously announced plans of certain major private label customers to in-source production in 2019.
Looking ahead to the 2019 fiscal year, the company expects to see EPS in the range of $2.50 to $2.55 and net sales between $9.075 billion and $9.125 billion. Consensus estimates call for $2.47 in EPS and $9.94 billion in revenue for the fiscal year ending in July.
Mark Clouse, Campbell’s president and CEO, commented:
In the quarter, we continued to drive sales growth in Global Biscuits and Snacks, fueled by our U.S. Snacks portfolio. The business continues its growth trends on Pepperidge Farm, coupled with improvements in the Snyder’s-Lance portfolio. In the Meals and Beverages segment, although there is more to do, we are making steady improvements on gross margin and profit and this business is showing signs of stabilization.
Shares of Campbell Soup traded up 9% Wednesday afternoon to $41.64, in a 52-week range of $32.03 to $43.98. The consensus price target is $34.83.
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