UPDATE: Campbell Soup Shares Rise On Upbeat FQ1 Earnings

Shares of Campbell Soup Company (NYSE: CPB) rose around 2% in pre-market trading after the company reported better-than-expected fiscal first-quarter profit. The Camden, New Jersey-based company posted a quarterly profit of $368 million, or $0.74 per share, versus a year-ago profit of $305 million, or $0.57 per share. Its sales climbed 4% to $2.26 billion. However, analysts were expecting earnings of $0.72 per share on revenue of $2.22 billion. U.S. Simple Meals sales rose 8% to $928 million, while U.S. soup sales gained 6%. Sales for Global Baking and Snacking rose 3% to $627 million, while sales for International Simple Meals and Beverages dropped 2% to $189 million. U.S. Beverages sales slipped 3% to $168 million, while Bolthouse and Foodservice sales climbed 4% to $343 million.Gross margin shrank 1.2 percentage points to 34.7%. Marketing and selling expenses fell 5% to $247 million. Denise Morrison, Campbell's President and Chief Executive Officer, said, “Although our year is off to a solid start, we are facing some challenges. Our gross margin performance did not meet our expectations due largely to higher than anticipated commodity costs and supply chain costs. We have plans to offset gross margin pressure in the remainder of the year. We also are facing headwinds from currency. Despite these challenges, we continue to make progress strengthening our core business and expanding into faster-growing spaces.”Campbell Soup now expects fiscal 2015 adjusted earnings of $2.42 to $2.50 per share, versus earlier forecast of $2.45 to $2.50 per share. It also projects sales growth of flat to 2%, versus 1% to 2%.Campbell Soup shares gained 2.04% to $45.50 in pre-market trading.