Campbell Soup
stock was rising Wednesday afternoon, after the packaged foods company reported earnings that beat Wall Street expectations.
For the fiscal first quarter, Campbell reported earnings of 91 cents a share, which beat expectations of 87 cents a share but was a decline from last year’s $1.02 a share. Revenue of $2.52 billion matched estimates but a drop from last year’s $2.58 billion.
“Our first-quarter results were in line with our expectations, as we continue to effectively navigate the current consumer landscape,” Chief Executive Mark Clouse said in the earnings release.
However, the company did see a 5% drop in volume from the prior year as private label competition bites as shoppers continue to feel inflationary pressures. Volume declines will most likely continue into the first half of 2024, with improvement expected in the back half of the year.
Campbell said the lower volumes were partially offset by 3% price increases from the previous year.
“CPB reported F1Q results that were largely better than most feared going into the print and in-line with internal expectations according to the company, though we note the beat was largely pricing driven while volumes declined in both segments,” RBC Capital Markets analyst Nik Modi, who rates the stock as Sector Perform with a $47 price target, wrote Wednesday.
Campbell also said for fiscal 2024 it expects adjusted earnings to be between $3.09 a share to $3.15 a share, which is above analyst’s estimates of $3.06 a share, according to FactSet.
Shares of Campbell were rising 7.2% to $43.24. The stock, which has declined 24% this year, was the best performer in the
S&P 500
Wednesday.
Write to Angela Palumbo at [email protected]
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