• Username (E-mail)
  • Password
Dow 20,822 0.1%  EStoxx50 3,304 -0.9%  Nikkei 19,284 -0.5%  EUR 1.0562 -0.4% 
Nasdaq 5,845 0.2%  FTSE100 7,244 -0.4%  Yen 112.1440 0.0%  Oil 56.0 -0.8% 
S&P500 2,367 0.2%  DAX 11,804 -1.2%  GBP 1.2460 0.0%  Gold 1,257 0.6% 

Campbell Soup share [Symbol: CPB / ISIN: US1344291091]

02/17/2017 07:48:27 AM
02/17/2017 07:48:27 AM UTC-0500

Campbell Soup Q2 Profit Tops Estimates; Organic Sales Down 2%; Affirms Guidance

(RTTNews) - Campbell Soup Company (CPB) reported that, excluding items, its second-quarter adjusted EPS increased 5 percent to $0.91 per share, compared with $0.87 per share in the year-ago quarter, reflecting lower adjusted tax rate. On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.88 for the quarter. Analysts' estimates typically exclude special items.

Second-quarter net earnings attributable to Campbell Soup Company was $101 million or $0.33 per share compared to $265 million or $0.85 per share, previous year. The company noted that it recorded pre-tax non-cash impairment charges of $212 million, or $0.58 per share, related to Campbell Fresh Segment. EBIT decreased 50 percent , principally driven by the impairment charges in the current-year quarter. Adjusted EBIT decreased 1 percent reflecting lower sales and higher marketing and selling expenses, partly offset by a higher adjusted gross margin percentage.

Second-quarter sales decreased 1 percent to $2.17 billion driven by the decline in organic sales, partially offset by the favorable impact of currency translation. Organic sales decreased 2 percent driven by lower volume and higher promotional spending. Analysts expected revenue of $2.22 billion for the quarter. Denise Morrison, Campbell's CEO, said, "I am not satisfied with our sales performance this quarter. Declines were most prominent in Campbell Fresh driven by a market share decline and weather-related issues in carrots, capacity constraints from the Bolthouse Farms Protein PLUS recall last June, and Garden Fresh Gourmet. C-Fresh performance was below our expectations. The new C-Fresh management team has conducted an extensive review of the business and has determined the recovery will take longer to execute than we originally planned. As a result, we no longer expect C-Fresh to grow this fiscal year."

For fiscal 2017, Campbell continues to expect sales to increase by 0 to 1 percent, adjusted EBIT to increase by 1 to 4 percent, and adjusted EPS to increase by 2 to 5 percent, or $3.00 to $3.09 per share. Analysts polled by Thomson Reuters expect the company to report profit per share of $3.08.

In fiscal 2015, Campbell launched a comprehensive reorganization and multi-year cost savings initiatives with targeted annualized cost savings of $300 million by fiscal 2018. Campbell now expects to achieve $300 million in cost savings by the end of fiscal 2017, a year earlier than anticipated. The company said, based on the success of the program to date and the identification of additional savings opportunities, the savings target is being increased from $300 million by the end of fiscal 2018 to $450 million by the end of fiscal 2020.

Analyst Opinions for Campbell Soup Co.

More Analyst Opinions
  • All
  • Buy
  • Hold
  • Sell
Campbell Soup Credit Suisse Group
Campbell Soup RBC Capital Markets
Campbell Soup UBS AG
Campbell Soup UBS AG
Campbell Soup RBC Capital Markets

Add or Edit Instrument

Related Stocks

Campbell Soup Co. 59.11 0.08% Campbell Soup Co.

Stock Market

News Ticker


  • News on Stocks
  • All News