UPDATE: Campbell Soup Posts In-Line Q4 Earnings, Issues Weak Profit Forecast
Campbell Soup Company (NYSE: CPB) reported in-line earnings for the fourth-quarter. However, the company issued a weak profit outlook for the full year.
The Camden, New Jersey-based company posted quarterly earnings from continuing operations of $137 million, or $0.43 per share, up from $117 million, or $0.37 per share, in the year-ago period. Excluding non-recurring items, its adjusted EPS from continuing operations rose 14% to $0.49 from $0.43.
Its sales from continuing operations climbed 7% to $1.852 billion, while organic sales slipped 2%. However, analysts were expecting earnings of $0.49 per share on revenue of $1.87 billion.
Sales for US Simple Meals climbed 5% to $518 million, while US Soup sales slipped 3%. Sales for Global Baking and Snacking jumped 10% to $628 million, while sales for International Simple Meals and Beverages gained 1% to $188 million.
Sales for US Beverages rose 6% to $184 million in the quarter, while sales for Bolthouse and Foodservice climbed 11% to $334 million.
Campbell Soup's adjusted gross margin narrowed to 34.3% from 36.7%, while marketing and selling expenses dropped 1% to $189 million in the quarter.
Denise Morrison, Campbell's President and Chief Executive Officer, said, “Our fiscal 2014 results were in line with our most recent guidance, including increases in net sales, adjusted EBIT and adjusted EPS.
Campbell Soup expects FY15 earnings of $2.45 to $2.50 per share, versus analysts' estimates of $2.57 per share. It also projects sales growth of 1% to 2%.
The executive added, “Looking ahead, we plan to deliver modest growth in fiscal 2015, despite a consumer environment that is likely to remain challenging. As we announced at our July 21 Investor Day, we expect fiscal 2015 growth to be below our long-term targets for sales and earnings.”
Campbell Soup shares fell 1.63% to $43.53 in pre-market trading.
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