Campbell’s, Heinz is Tale of Contrasts (CPB, HNZ)

Two major food companies reported quarterly earnings this morning, and the differences between the two are notable. Campbell Soup Co. (NYSE: CPB) reported second quarter EPS of $0.64 on revenue of $2.11 billion and H.J. Heinz Co. (NYSE: HNZ) reported its third quarter adjusted EPS of $0.95 on revenue of $2.92 billion.

The consensus estimate on Campbell’s called for EPS of $0.62 on sales of $2.12 billion. Net sales fell -1% year-over-year, primarily due to promotional pricing. Campbell’s reaffirmed its fiscal year guidance of sales growth up to 2% and adjusted earnings before taxes down -7% to -9%. The company also expects adjusted EPS to be -5% to -7% lower year-over-year, with adjusted EPS coming in at $2.35-$2.42, compared with fiscal year 2011 EPS of $2.54. The consensus estimate for full-year EPS is $2.36.

At Heinz, adjusted EPS of $0.95 clobbered the consensus estimate of $0.86, and revenue of $2.92 billion also beat estimates of $2.89 billion. Sales grew 7% year-over-year, due to growth in emerging markets and better sales of the company’s most popular brands. Heinz narrowed its reported EPS range for the full year to $3.32-$3.34, excluding special items. The company expects 7%-8% sales growth on a constant currency basis.

Campbell’s is trading up about 1.4% in the pre-market, at $32.50 in a 52-week range of $29.69-$35.66. Heinz is up 2.5% at $53.40 in a 52-week range of $46.99-$55.00.

Paul Ausick