Campbell Soup (CPB) reported earnings Thur 1 Sept 2016 (b/o)

** charts before earnings **

 

** charts after earnings **

Campbell Soup misses by $0.04, reports revs in-line; guides FY17 EPS and rev below consensus; raises dividend 12%  :

• Reports Q4 (Jul) earnings of $0.46 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of $0.50; revenues fell 0.4% year/year to $1.69 bln vs the $1.69 bln Capital IQ Consensus. the benefit from the acquisition of Garden Fresh Gourmet was offset by the decline in organic sales and the adverse impact of currency translation.
• Organic sales decreased 1% primarily driven by Campbell Fresh, reflecting declines in carrots and carrot ingredients, as well as the impact from the voluntary recall announced on June 22 of Bolthouse Farms Protein PLUS drinks. The estimated negative impact on net sales in the fourth quarter related to the recall and related production outages was ~one%age point.
• Adj. gross margin decreased 0.9 points. The decrease in adjusted gross margin was primarily driven by increased promotional spending, inflation, the impact of the Bolthouse Farms recall and related production outages, as well as higher carrot costs, partly offset by productivity improvements.
• Co issues downside guidance for FY17, sees EPS of $3.00-3.09, excluding non-recurring items, vs. $3.13 Capital IQ Consensus Estimate; sees FY17 revs of +0-1% to ~$7.96-8.04 bln vs. $8.06 bln Capital IQ Consensus; adj. EBIT +1-4%.  
• "The performance of our Campbell Fresh business (sales -5%), driven predominantly by execution issues, is disappointing. We have taken and are taking steps designed to ensure the business performs to its potential. We remain confident in our Campbell Fresh strategy and its ability to deliver long-term growth consistent with its portfolio role, as the business remains well-positioned to capitalize on the health and well-being consumer trend."
• Raises quarterly dividend 12% to $0.35/share.