Filed Under:  U.S. & World

Campbell Soup results helped by higher pricing

Contributed by on September 5, 2015 at 9:25 pm

Citing results from continuing operations, Campbell reported adjusted earnings before interest and taxes of $234 million for the quarter, a 5 percent improvement from a year earlier.

Shares of Campbell Soup Company opened the most recent trading session at 47.18 and closed at 46.87. Organic growth came in lighter than he expected, but he called the company’s gross margin strong.

Campbell, the largest US soup company has done a number of things over the past year to jump start its sales growth, which included adding organic varieties of classic products such as tomato bisque, reducing its use of artificial ingredients and a pledge to remove corn syrup from foods. The 52-week high of the share price is $50.8 and the company has a market cap of $14,902 million.

Excluding items, Campbell earned 43 cents per share, higher than analysts’ average estimate of 42 cents, according to Thomson Reuters I/B/E/S. Three equities research analysts have rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company’s stock. Zacks raised Campbell Soup Company from a hold rating to a buy rating and set a $53.00 price objective for the company in a research note on Wednesday, May 27th.

For the full fiscal year 2015, Campbell said reported sales were down 2 percent, while adjusted, diluted earnings were marginally higher, at $2.46 per share compared with $2.45 in fiscal 2014. The shares saw huge fund flow intraday; a massive $6.96 million made their way in through the upticks but an even bigger $10.57 million made their way out through downticks. On a consensus basis, analysts have a one year target price of 46.27 on the equity.

The Camden, New Jersey-based company said it had net income of 22 cents per share. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 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.

Campbell has been trimming costs as sales of products like canned soups have fallen because shoppers are increasingly seeking out food options that they feel are fresher. In the Asia-Pacific region, the Company resells its products through convenience stores, retail food chains along with other retail, commercial and noncommercial establishments.

Campbell Soup Company (NYSE:CPB) Given PT Range of $45-$50