Packaged foods maker Campbell Soup Company (NYSE:CPB) on Tuesday posted market-beating earnings results and stood by its full-year 2017 outlook.
The Camden, New Jersey-based company reported adjusted Q1 net income of $1.00 per share, which was $0.05 better than the Wall Street consensus estimate of $0.95. Revenues were flat from last year at $2.2 billion, matching analysts’ view.
Organic sales fell 1% from last year, hurt by declines in Campbell Fresh. Those declines were partially offset by gains in the company’s Global Biscuits and Snacks segments. Meanwhile, adjusted gross margin rose 1.2 percentage points to 39.1%, helped by higher gross margins in the Americas Simple Meals and Beverages segment.
Looking ahead, Campbell’s reiterated its previously announced full-year 2017 EPS forecast of $3.00 to $3.09, which straddles Wall Street’s average estimate of $3.04 per share. CPB also expects revenues to be flat to up 1%, which implies sales of $7.96 to $8.04 billion. Analysts are looking for full-year revenues of $8.01 billion.
The company commented via press release:
“Fiscal 2017 is off to a solid start relative to our expectations. We continue to execute against our strategic imperatives, reinvest in our business to stimulate topline growth and aggressively manage our costs. We delivered expanded gross margin, and adjusted EBIT and EPS growth cycling a strong year-ago quarter. As expected, organic sales were down slightly compared to the prior year, due to the performance of Campbell Fresh. Campbell Fresh continues to rebuild capacity for Bolthouse Farms Protein PLUS drinks following a voluntary recall last quarter, and remains focused on working to regain lost carrot customers over time with improved quality. “Looking ahead, I remain optimistic about plans to accelerate growth with improving trends in U.S. soup and the upcoming launch of Well Yes! ready-to-serve soup, continued strong performance in Pepperidge Farm and a return to growth in Campbell Fresh. Our guidance for the year remains unchanged.”
Campbell Soup shares rose $0.24 (+0.44%) to $55.28 in premarket trading Tuesday. Prior to today’s report, CPB had gained 4.74% year-to-date, versus a 7.99% rise in the benchmark S&P 500 index during the same period.