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Campbell Soup (CPB) Q3 Earnings & Sales Miss, Alters View

Zacks

Campbell Soup Company CPB, the manufacturer of branded convenience food products, reported third-quarter fiscal 2017 adjusted earnings of 59 cents a share lagging the Zacks Consensus Estimate of 64 cents and down 9% year over year.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2017 and 2018 has been stable in the last 30 days. If we look at Campbell Soup’s performance in the trailing four quarters (excluding the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 0.2%.

Campbell Soup Company Price and EPS Surprise

Campbell Soup Company Price and EPS Surprise | Campbell Soup Company Quote


Revenues: Campbell Soup generated total sales of $1,853 million were down 1% year over year and missed the Zacks Consensus Estimate of $1,870 million. Organic sales also declined 1% due to declines in Americas Simple Meals and Beverages, and Campbell Fresh, partly negated by gains in Global Biscuits and Snacks.

Guidance: Based on its fiscal third-quarter performance, difficult operating environment and the outlook for rest of the fiscal year, Campbell Soup adjusted its outlook for fiscal 2017. It lowered its sales guidance by one percentage point to -1 to 0%, compared with earlier projection of flat to up 1%. However, it raised the adjusted EBIT and adjusted earnings per share forecasts by raising the low-end of both ranges. While the top line remains pressured, the company expects its ongoing cost saving actions to negate the effect of lower sales. Adjusted EBIT is now expected to increase 2–4% versus 1–4% expected earlier. Adjusted earnings per share are anticipated to increase 3–5%, compared with the previous guidance of 2–5% growth.

Zacks Rank: Currently, Campbell Soup carries a Zacks Rank #3 (Hold), which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: Campbell Soup’s shares declined nearly 5.2% during pre-market trading hours.

Check back later for our full write up on Campbell Soup’s earnings report!

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