Campbell Soup (CPB) reported earnings on Tue 11/22/16 (b/o)

** charts before earnings **

 

** charts after earnings **

 

Campbell Soup beats by $0.05, reports revs in-line; reaffirms FY17 guidance  :

• Reports Q1 (Oct) adj. earnings of $1.00 per share, $0.05 better than the Capital IQ Consensus of $0.95; revenues were unchanged from the year-ago period at $2.2 bln, in-line with estimates.
  • Organic sales decreased 1% driven by declines in Campbell Fresh, partly offset by gains in Global Biscuits and Snacks.
  • Adj. gross margin increased 1.2 points from 37.9% to 39.1% driven by gross margin expansion in Americas Simple Meals and Beverages. Overall, the increase in adjusted gross margin was primarily driven by productivity improvements and the benefits from cost savings initiatives, partly offset by cost inflation, and increased carrot and beverage supply chain costs within Campbell Fresh.
• Co reaffirms guidance for FY17, sees EPS of $3.00-3.09 vs. $3.04 Capital IQ Consensus; adj. EBIT +1-4%; revs +0-1% to ~$7.96-8.04 bln vs. $8.01 bln Capital IQ Consensus. 
• "Fiscal 2017 is off to a solid start relative to our expectations. We continue to execute against our strategic imperatives, reinvest in our business to stimulate topline growth and aggressively manage our costs. We delivered expanded gross margin, and adjusted EBIT and EPS growth cycling a strong year-ago quarter. As expected, organic sales were down slightly compared to the prior year, due to the performance of Campbell Fresh. Campbell Fresh continues to rebuild capacity for Bolthouse Farms Protein PLUS drinks following a voluntary recall last quarter, and remains focused on working to regain lost carrot customers over time with improved quality. "Looking ahead, I remain optimistic about plans to accelerate growth with improving trends in U.S. soup and the upcoming launch of Well Yes! ready-to-serve soup, continued strong performance in Pepperidge Farm and a return to growth in Campbell Fresh. Our guidance for the year remains unchanged."