Breaking News
0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Campbell Soup Gains Post Earnings on Sustained Demand and Improved Supply

Stock Markets Jun 08, 2022 10:38
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
CPB
-1.18%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sam Boughedda

Shares of Campbell Soup Company (NYSE:CPB) have gained modestly (+0.5%) early Wednesday trading after it posted earnings and guidance that beat analyst estimates.

The processed food and snack company reported third quarter earnings per share of $0.70, $0.09 better than expectations of $0.61. Revenue for the quarter came in at $2.13 billion versus the consensus estimate of $2.05 billion.

Net sales increased 7%, with the company stating that demand for its products remained strong, with consumption rising 4% compared to last year. Meanwhile, it was boosted by improved margins as it increased product prices, with an adjusted gross margin increase of 90 basis points to 31.5%.

Price increases have helped packaged food makers boost revenue, while there has also been a substantial uptick in demand. Campbell Soup's performance was also supported by easing supply chain challenges.

"As expected, we had a strong recovery across the business in the quarter with high-single-digit sales growth driven by sustained consumer demand for our brands and significantly improved supply," said Mark Clouse, Campbell’s President and CEO. "Our improved supply chain execution along with inflation-driven pricing began to mitigate the margin pressure we have experienced over the last 12 months."

Looking ahead, the company raised its full-year fiscal 2022 net sales guidance, with organic net sales now expected to rise between 1% and 2% from previous expectations of -1% to 1%. In addition, Campbell maintained FY22 EPS guidance of $2.75 to $2.85 versus the consensus of $2.78.

"While the operating environment remains challenging and we continue to expect significant inflation, our team is executing well, and Campbell is on a much stronger foundation today. Looking ahead, we are raising our full-year fiscal 2022 net sales outlook and reaffirming our prior adjusted EBIT and adjusted EPS guidance reflecting the on-going inflation-driven margin pressure," added Clouse.

Stifel analyst Christopher Growe expects shares to trade up on the news and they believe the performance was better than investors expected. Still, the firm maintained a Hold rating and $46 price target on the stock.

Campbell Soup Gains Post Earnings on Sustained Demand and Improved Supply
 

Related Articles

Look for opportunities to buy on dips
Look for opportunities to buy on dips By IANS - Sep 25, 2022

BSESENSEX lost 741.87 points or 1.26 per cent to close at 58,098.92 points while NIFTY lost 203.50 points or 1.16 per cent to close at 17,327.35 points. The broader markets saw...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email