By Shares of Campbell Soup Co. (CPB) showed resilience as they climbed 0.9% during premarket trading on Thursday. The canned soup, foods, and snacks company reported fiscal Q4 profit in line with expectations and sales that exceeded estimates. This was achieved despite a 5% decline in volume and mix, thanks to a 10% increase in prices.
Robust financials for Q4
For the quarter ending July 30, Campbell Soup saw its net income rise from $96 million to $169 million, on a year-over-year basis. This translated to earnings per share (EPS) of 57 cents, compared to 32 cents in the same period last year. Adjusted for nonrecurring items, the EPS remained at 50 cents, aligning perfectly with the FactSet consensus.
Impressive sales performance
Campbell Soup’s sales for Q4 reached $2.068 billion, surpassing the FactSet consensus of $2.056 billion. The growth was driven by a 0.1% increase in meals and beverages sales, reaching $936 million, as well as a substantial 7.6% jump in snacks sales, totaling $1.13 billion. While both segments experienced a 5% drop in volume, meals and beverages saw a price increase of 6%, while snacks recorded an impressive 13% price surge.
Outlook for fiscal year 2024
Looking ahead, Campbell Soup expects adjusted EPS for fiscal year 2024 to be in the range of $3.09 to $3.15, slightly exceeding the FactSet consensus of $3.09. The company also anticipates sales growth ranging from negative 5% to positive 1.5%. Comparatively, the current FactSet sales consensus of $9.47 billion implies growth of approximately 1.2%.
Market performance
In the past three months, Campbell Soup’s stock has experienced a decline of 17%, while the S&P 500 has recorded an 8% gain.
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