Campbell Soup reports a beat and raise quarter
Campbell Soup reported strong Q3 results and raised guidance for the full year on Wednesday.
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Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.
2022-06-08 20:02

Shares of Campbell Soup Co closed 2.0% up on Wednesday after the company reported its fiscal third-quarter results that beat analysts’ expectations. The processed foods and snacks company also raised full-year sales guidance well above the FactSet consensus.
Campbell Soup reports a beat and raise quarter

Campbell Q3 Financial Highlights

The following results are compared to the third quarter fiscal 2021.

  • Net income jumped 18% to $188.0 million

  • Earnings per share on adjusted basis shot up 37% to $0.70

  • Net sales of $2.130 billion represent a 7.0% growth

FactSet consensus for adjusted EPS was $0.61 with $2.042 billion in net sales. In the earnings press release, CEO Mark Clouse said:

“As expected, we had a strong recovery across the business in the quarter with high-single-digit sales growth driven by sustained consumer demand for our brands and significantly improved supply. Our improved supply chain execution along with inflation-driven pricing began to mitigate the margin pressure we have experienced over the last 12 months.”

Other Prominent Figures

Other notable figures in the earnings report include a 6% year-over-year increase in net sales from Meals and Beverages and 8% increase from Snacks.

The Camden-headquartered company saw a strong demand for products with a 4% increase in consumption versus prior year, and foresees a 14% growth on a three-year basis. Organic sales increased 9%, while gross margin decreased 31.2% from 31.7% in the prior year.

Campbell’s Outlook for 2022

Campbell now forecasts its sales to grow by up to 1% this year versus prior guidance for an up to 2% decline. It guided for earnings per share on an adjusted basis in the range of $2.75 to $2.85 for fiscal 2022.
In comparison, FactSet consensus is a 0.8% decrease in sales to $8.411 billion, and adjusted EPS of $2.78 for the year. The CEO added:

“While the operating environment remains challenging and we continue to expect significant inflation, our team is executing well, and Campbell is on a much stronger foundation today. Looking ahead, we are raising our full-year fiscal 2022 net sales outlook and reaffirming our prior adjusted EBIT and adjusted EPS guidance reflecting the on-going inflation-driven margin pressure.”

The 14.27 billion company that trades at a PE ratio of 15.61 is currently up roughly 8% for the year. Wall Street currently rates Campbell Soup at “hold” with an average price target of $45 a share.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

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2022-06-08 20:02

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About the Author
Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.


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