Campbell Soup Company (CPB - Free Report) , the manufacturer of branded convenience food products, came out with second-quarter fiscal 2016 results, wherein adjusted earnings of 87 cents a share were in line with the Zacks Consensus Estimate. Also, the bottom line jumped nearly 23% year over year.
Following the quarter, Campbell Soup reiterated its outlook for fiscal 2016, where it expects net sales growth to come in between -1% to 0% range. Also, adjusted EBIT is expected to rise 10% to 13%, while adjusted earnings of $2.88 - $2.96 per share are expected to grow 9% to 12%.
Earnings Estimate Revision: The Zacks Consensus Estimate has been witnessing a downtrend in the last 30 days. However, the company’s performance over the trailing four quarters has been quiet encouraging. In the trailing four quarters (including the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 12.2%.
Revenues: Campbell Soup generated total sales of $2,201 million that declined 1% year over year and missed the Zacks Consensus Estimate of $2,203 million. The year over year decline is attributed to the adverse currency translations coupled with lower volumes, offset by higher prices, benefits of the Garden Fresh Gourmet acquisition and lower promotional spending. Organic sales were flat driven by strong performance of the Global Biscuits and Snacks division, compensated by lower sales at other divisions.
Zacks Rank: Currently, Campbell Soup carries a Zacks Rank #1 (Strong Buy) which is subject to change following the earnings announcement.
Check back later for our full write up on Campbell Soup’s earnings report!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>