Campbell Soup Q4 Profit Beats Views

reported better-than-expected earnings for its fiscal fourth quarter. The Camden, New Jersey-based company reported quarterly net income of $68 million, or $0.22 per share, compared to $137 million, or $0.43 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings increased to $0.43 per share from $0.41 per share. Its sales slipped 9 percent to $1.693 billion. However, analysts were expecting earnings of $0.42 per share on revenue of $1.69 billion. The average estimate among 9 Estimize users was for earnings of $0.44 per share and revenue of $1.71 billion. Sales at U.S. Simple Meals segment dropped 3 percent to $505 million in the quarter, while sales at Global Baking and Snacking segment fell 12 percent to $553 million. Sales at International Simple Meals and Beverages segment dropped 24 percent to $142 million, while sales at U.S. Beverages segment shrank 10 percent in the quarter to $165 million. Sales at Bolthouse and Foodservice segment slipped 2 percent to $328 million. Gross margin expanded to 36.1 percent from 34.1 percent. Adjusted EBIT rose 5 percent to $234 million. Marketing and selling expenses shrank 7 percent to $176 million in the quarter. Denise Morrison, Campbell's President and Chief Executive Officer, said, "We had a solid finish to the fiscal year considering the difficult operating environment, and delivered sales, adjusted EBIT and adjusted EPS within our most recent guidance. I am pleased with the fourth-quarter performance in U.S. Simple Meals as well as organic sales growth in the Bolthouse and Foodservice segment. For the year, four of the company's five reporting segments posted organic sales gains. Global Baking and Snacking performed well this year as we made progress in stabilizing our business in Australia." For fiscal 2016, the company projects adjusted earnings to rise 3 percent to 5 percent, or $2.53 to $2.58 per share and sales growth of 0 percent to 1 percent. Campbell shares rose 1.92 percent to close at $47.77 yesterday.