Companies and Brands
Campbell Soup Takes a Bite Out of Earnings
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Campbell Soup Co. (NYSE: CPB) released its fiscal fourth-quarter financial results before the markets opened on Friday. The company said that it had $0.50 in earnings per share (EPS) and $2.02 billion in revenue. That compared with consensus estimates of $0.41 in EPS and $1.98 billion in revenue, as well as the $0.44 per share and $2.22 billion posted in the same period of last year.
This past quarter, the company announced that it entered into an agreement to sell the Kelsen Group, and also that it had entered into an agreement to sell Arnott’s and certain of Campbell’s International operations. These transactions are expected to close in the first half of fiscal 2020.
In terms of its segments, Campbell Soup reported that Meals & Beverages organic net sales increased 1% year over year to $813 million, while Snacks organic net sales increased 4% to $967 million.
Looking ahead to the fiscal 2020, the company expects to see EPS in the range of $2.50 to $2.55 and net sales growing 1% to 3%. Consensus estimates call for $2.54 in EPS and $9.15 billion in revenue for the full year.
Mark Clouse, Campbell’s president and CEO, commented:
Our strong fourth-quarter results culminated a year of steady, positive performance for Campbell. We delivered consistent results and met or exceeded expectations for four consecutive quarters this year. We made significant progress against our 2019 strategic initiatives, namely: improving our in-market performance; overdelivering our cost savings programs; strengthening our relationships with key retailers; focusing the portfolio on our two core businesses in North America; and, completing the divestiture of Campbell Fresh and announcing the divestiture of Campbell International. We have created a solid foundation to build upon in fiscal 2020.
Shares of Campbell Soup traded up more than 7% early Friday at $46.60, in a 52-week range of $32.03 to $43.84. The consensus price target is $39.57.
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