** charts before earnings **
** charts after earnings **
Campbell Soup beats by $0.01, misses on revs; raises FY16 EPS, in-line; reaffirms sales :
- Reports Q3 (Apr) earnings of $0.65 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.64; revenues fell 1.6% year/year to $1.87 bln vs the $1.91 bln Capital IQ Consensus, driven by a decline in organic sales and the adverse impact of currency translation, partly offset by the benefit from the acquisition of Garden Fresh Gourmet.
- Organic sales decreased 2% driven by lower volume and higher promotional spending, partly offset by higher selling prices.
- Adjusted gross margin increased 0.4 points. The increase in adjusted gross margin was primarily driven by productivity improvements and higher selling prices, partially offset by higher supply chain costs and inflation, as well as higher promotional spending. The increase in supply chain costs was primarily driven by higher carrot costs in the quarter due to the adverse impact of weather conditions on crop yields.
- Co issues guidance for FY16, raises EPS to $2.93-3.00 (+11-13%) from $2.88-2.96, excluding non-recurring items, vs. $2.96 Capital IQ Consensus; reaffirms FY16 sales flat to down 1% to $8.00-8.08 bln vs. $8.02 bln consensus.
- "Despite what continues to be a very challenging consumer environment, Campbell remains focused on becoming a leaner, more effective and efficient company. We're unsatisfied with our third-quarter organic sales growth, which was largely due to a weaker U.S. soup season, some challenges in V8 beverages and a weather-related disruption to our fresh carrot supply. Importantly, we understand the factors affecting our top-line performance and are addressing them. Year-to-date organic sales are down slightly. We expect organic sales to grow in the fourth quarter and next fiscal year, behind more robust innovation and marketing. Third-quarter adjusted EBIT declined, but was better than expected.
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