Free Research Report as Campbell Soup’s Adjusted EPS Jumped 10% and Beat Expectations

LONDON, UK / ACCESSWIRE / March 29, 2018 / Active-Investors.com has just released a free earnings report on Campbell Soup Co. (NYSE: CPB). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CPB. The Company reported its second quarter fiscal 2018 operating and financial results on February 16, 2018. The world's biggest soup maker topped revenue estimates, and provided guidance for the full fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Campbell Soup most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=CPB

Earnings Highlights and Summary

For the quarter ended January 28, 2018, Campbell Soup's sales were $2.18 billion, marginally higher compared to $2.17 billion in Q2 FY17, as a 1-point benefit from the acquisition of Pacific Foods and a 1-point favorable impact of currency translation were offset by a 2% decline in organic sales driven primarily by lower volumes. The Company's revenue numbers beat analysts' estimates of $2.16 billion.

During Q2 FY18, Campbell Soup's gross margin decreased to 35.1% from 37.4% in Q2 FY17. Excluding items impacting comparability in FY18, the Company's adjusted gross margin decreased 2.2% to 35.2%, due to cost inflation and higher supply chain costs, as well as an unfavorable mix, partly offset by productivity improvements and the benefits from cost savings initiatives.

For Q2 FY18, Campbell Soup's marketing and selling expenses fell 5% to $228 million, primarily due to lower advertising and consumer promotion expenses, as well as the benefits from cost savings initiatives. The Company's administrative expenses increased 17% to $165 million on a y-o-y basis. Excluding items impacting comparability, Campbell Soup's adjusted administrative expenses dropped 1% on a y-o-y basis.

Campbell Soup's earnings before interest and taxes (EBIT) jumped 19% to $243 million compared to $205 million in Q2 FY17. Excluding items impacting comparability, the Company's adjusted EBIT decreased 4% to $402 million on a y-o-y basis, primarily reflecting a lower adjusted gross margin percentage, partly offset by an increase in adjusted other income and lower marketing and selling expenses.

For Q2 FY18, Campbell Soup reported earnings of $285 million, or $0.95 per share, compared to $101 million, or $0.33 per share, in Q2 FY17. Excluding items impacting comparability, the Company's adjusted earnings advanced 10% to $1.00 per share, primarily due to a lower adjusted tax rate. Campbell Soup's earnings came in comfortably ahead of Wall Street's estimates of $0.81 per share.

Segment Results

During Q2 FY18, Campbell Soup's Americas Simple Meals and Beverages segment's sales fell 2% to $1.20 billion on a y-o-y basis. The segment's organic sales decreased 4%, driven primarily by declines in US Soup and V8 Beverages. Excluding the benefit from the acquisition of Pacific Foods, sales of US Soup dropped 7% on a y-o-y basis, driven by declines in ready-to-serve and condensed soups, while sales of broth were comparable to the prior year's same quarter. The segment's operating earnings declined 9% to $282 million on a y-o-y basis, driven primarily by a lower gross margin percentage and lower sales volume.

For Q4 2017, Campbell Soup's Local Biscuits and Snacks segment's sales advanced 4% to $726 million on a y-o-y basis. Excluding the favorable impact of currency translation, the segment's organic sales rose 3%, primarily attributed to gains in Pepperidge Farm snacks, reflecting a growth in Goldfish crackers and in cookies, as well as gains in Kelsen cookies in China. In the reported quarter, the segment's operating earnings edged up 1% to $139 million.

During Q4 2017, the Company's Campbell Fresh segment's sales fell 1% to $257 million on a y-o-y basis, driven primarily by sales declines in Bolthouse Farms' refrigerated beverages. The segment's operating earnings declined to a loss of $11 million in the reported quarter from a loss of $3 million in the prior year's comparable quarter, reflecting a lower gross margin percentage, driven primarily by an increase in supply chain costs and carrot costs.

Cost Savings Program

During Q2 FY18, Campbell Soup achieved $20 million in savings under its multi-year cost savings program, bringing the total program-to-date savings to $365 million. Based on the success of the program to date and the identification of additional savings opportunities, the Company has increased the annualized savings target to $500 million from $450 million by the end of the fiscal year 2020.

Cash Matters

Campbell Soup's cash flow from operations decreased to $660 million in Q2 FY18 from $667 million in Q2 FY17, primarily due to higher net payments of hedging activities.

Fiscal 2018 Guidance

For the fiscal year 2018, Campbell Soup is forecasting sales to change by -1 to +1%; adjusted EBIT to decline by 5% to 7%; and adjusted earnings per share to grow by 2% to 4%, or $3.10 to $3.17.

Stock Performance Snapshot

March 28, 2018 - At Wednesday's closing bell, Campbell Soup's stock advanced 1.69%, ending the trading session at $43.41.

Volume traded for the day: 2.75 million shares.

After yesterday's close, Campbell Soup's market cap was at $13.00 billion.

Price to Earnings (P/E) ratio was at 14.15.

The stock has a dividend yield of 3.23%.

The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry. This sector was up 0.6% at the end of the session.

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