Campbell Soup (CPB) Stock Down on Q4 Earnings Miss
Campbell Soup Company CPB, the manufacturer of branded convenience food products, reported fourth-quarter fiscal 2016 adjusted earnings of 46 cents a share that fell short of the Zacks Consensus Estimate of 50 cents and declined 6.1% year over year.
Earnings Estimate Revision: The Zacks Consensus Estimate has remained stable in the last 30 days. Also, the company’s performance over the trailing four quarters has been quiet encouraging. In the trailing four quarters (including the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 4.3%.
CAMPBELL SOUP Price and EPS Surprise
CAMPBELL SOUP Price and EPS Surprise | CAMPBELL SOUP Quote
Revenues: Campbell Soup generated total sales of $1,687 million that was marginally below both the year-ago and the Zacks Consensus Estimate of $1,693 million. The near flat sales resulted from the benefits of the Garden Fresh Gourmet acquisition offset by a fall in organic sales and adverse currency translations. Organic sales declined 1% driven by the soft performance of Campbell Fresh due to fall in sales of carrots and carrot ingredients, along with the impacts from the voluntary recall of Bolthouse Farms Protein PLUS drinks on Jun 22.
Guidance: Campbell Soup provided its outlook for fiscal 2017. It expects net sales growth for the full fiscal to be in the range of flat to up 1%. Adjusted EBIT is expected to increase 1%–4% and adjusted earnings per share are anticipated in the range of $3.00–$3.09 per share. Earnings per share reflect a growth of 2%–5% year over year.
Key Events: Despite the soft results in fiscal 2016, the company remains confident of its long-term growth prospects and strong profit performance in fiscal 2017. Hence, the company raised its quarterly dividend by 12% to 35 cents per share. The dividend is payable on Oct 31, to shareholders with record as on Oct 12.
Zacks Rank: Currently, Campbell Soup carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Stock Movement: Campbell Soup’s shares dipped nearly 3.7% during pre-market trading hours following the dismal Q4 earnings and sales performance.
Check back later for our full write up on Campbell Soup’s earnings report!
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