Categories AlphaGraphs, Earnings, Retail

Campbell Soup’s shares rise over 5% after Q2 results beat expectations

Campbell Soup Company (CPB) topped consensus estimates on revenue and earnings for the second quarter of 2019, sending shares climbing over 5% in premarket hours on Wednesday.

Net sales rose 24% to $2.7 billion from the same period a year ago, reflecting benefits from the recent acquisitions of Snyder’s-Lance and Pacific Foods. Organic sales were comparable to the prior  year as gains in Global Biscuits and Snacks were offset by declines in Campbell Fresh as well as Meals and Beverages.

An infographic on Campbell Soup's second quarter 2019 earnings
Campbell Soup Q2 2019 Earnings Infographic

Net loss attributable to Campbell Soup Company totaled $59 million, or $0.20 per share, compared to a net income of $285 million, or $0.95 per share, in the prior-year quarter. The GAAP results reflect impairment charges related to the Campbell Fresh segment.

Adjusted EPS dropped 23% to $0.77, reflecting EBIT declines in the base business, a higher adjusted tax rate and a dilutive impact from the Snyder’s-Lance and Pacific Foods acquisitions.

Sales in the Meals and Beverages segment inched up by 1% to $1.23 billion during the quarter. In Global Biscuits and Snacks, sales jumped 76% year-over-year, reflecting strength in Pepperidge Farm. In the Campbell Fresh segment, sales fell 7% due to declines in refrigerated soup, Bolthouse Farms refrigerated beverages and Garden Fresh Gourmet.

For the full year of 2019, on a pro forma basis, assuming divestitures, net sales are expected to be $7.9 billion to $8.0 billion and adjusted EPS is expected to be $2.40 to $2.50. Pre-divestitures, net sales is expected to range between $9.9 billion and $10.1 billion while adjusted EPS is expected to be $2.45 to $2.53.

During the second quarter, Campbell achieved $50 million in savings under its multi-year cost savings program, inclusive of Snyder’s-Lance synergies, bringing total program-to-date savings to $550 million. The company expects cumulative annualized savings of $945 million by the end of fiscal 2022.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Citigroup (C) reports higher revenue and profit for Q2 2024; earnings beat

Banking behemoth Citigroup Inc. (NYSE: C) Friday reported an increase in revenue and net income for the second quarter of 2024. Earnings came in above analysts’ estimates. Net profit for

Wells Fargo (WFC) Q2 2024 Earnings: Key financials and quarterly highlights

Wells Fargo & Company (NYSE: WFC) reported its second quarter 2024 earnings results today. Total revenue rose 1% year-over-year to $20.7 billion. Net income dropped 1% to $4.9 billion while

JPM Earnings: All you need to know about JPMorgan’s Q2 2024 earnings results

JPMorgan Chase & Co. (NYSE: JPM) reported second quarter 2024 earnings results today. Reported revenue increased 22% year-over-year to $50.2 billion. Managed revenue rose 20% to $51 billion. Net income

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top