Campbell Soup Company (NYSE:CPB)
On Friday morning before the market opened, Campbell Soups (CPB) announced third quarter earnings that slightly missed analyst expectations and sent shares tumbling in the premarket session. The soup company announced adjusted earnings of 65 cents per share on $1.87 billion in sales, down from previous period last year of $1.9 billion, while analysts were looking for 64 cents per share on flat revenues. The company also updated full year outlook with adjusted earnings coming in at $2.93 – $3 per share which is up from its previous outlook of $2.88 – $2.96. Currently analysts have an average price target of $59.29.
Looking at the chart you will see that shares have come in quite a bit in the premarket session to lows of $61.10 after closing the Thursday at $63.98, a 4.5% drop in price. We should see some support come in at $60 followed by ascending support at around $58.75 while resistance will come in at $62.28 and $64. Shares are currently well above their 200-day moving average sitting at $55.32 and are up 23% on the year as of Thursday’s close. Look for increased volatility today as traders will be looking to take advantage of this big move.
CEO Comments
Denise Morrison, Campbell’s President and Chief Executive Officer, said:
Despite what continues to be a very challenging consumer environment, Campbell remains focused on becoming a leaner, more effective and efficient company. We’re unsatisfied with our third-quarter organic sales growth, which was largely due to a weaker U.S. soup season, some challenges in V8 beverages and a weather-related disruption to our fresh carrot supply. Importantly, we understand the factors affecting our top-line performance and are addressing them. Year-to-date organic sales are down slightly. We expect organic sales to grow in the fourth quarter and next fiscal year, behind more robust innovation and marketing. Third-quarter adjusted EBIT declined, but was better than expected. Our year-to-date adjusted EBIT increase of 15 percent reflects our improved gross margin performance and the benefits of our three-year cost savings program and organization redesign. Today we updated our guidance, raising our outlook for adjusted EPS. We continue to stay focused on driving sustainable, profitable net sales growth and creating shareholder value.
CPB Profile
Campbell Soup Company manufactures and markets food products. The Company’s segments include U.S. Simple Meals; Global Baking and Snacking; International Simple Meals and Beverages; U.S. Beverages, and Bolthouse and Foodservice. Its U.S. Simple Meals segment includes various products, such as Campbell’s condensed and ready-to-serve soups; Prego pasta sauces, and Pace Mexican sauces. Its Global Baking and Snacking segment includes Pepperidge Farm cookies, crackers, bakery and frozen products in the United States retail. Its International Simple Meals and Beverages segment includes retail business in Canada. Its U.S. Beverages segment includes various products, such as V8 juices and beverages, and Campbell’s tomato juice. Its Bolthouse and Foodservice segment comprises the Bolthouse Farms carrot products operating segment, including fresh carrots, juice concentrate and fiber. Its brands include Arnott’s, Bolthouse Farms, Campbell’s, Garden Fresh Gourmet, Goldfish, Kjeldsens and Pace.