Campbell Soup Beats On Earnings, But Sales Miss

By Markets MarketWatch Pulse

Campbell Soup Co. shares rose 0.8% in Friday premarket trading, after the company reported an earnings beat and raised its adjusted earnings per share outlook. The food company said it had net income of $185 million, or 59 cents per share, up from $179 million, or 57 cents per share. Adjusted earnings were 65 cents per share, beating the FactSet EPS consensus of 64 cents. Sales totaled $1.87 billion, slipping from $1.9 billion last year and falling short of the $1.91 billion FactSet consensus. Campbell's Chief Executive Denise Morrison said in a statement that sales growth was hindered by a weaker soup season in the U.S., challenges with the V8 line of beverages, and a weather-related disruption to the company's carrot supply. Campbell's now expects fiscal 2016 adjusted EPS between $2.93 and $3.00, up from $2.88 to $2.96. It reaffirmed its sales outlook between negative 1% and flat. Campbell Soup shares are up 37% for the past year while the S&P 500 is down 4% for the same period.

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