Campbell Soup stock gains ground after profit matches expectations while sales top, as prices jump 10%

Shares of Campbell Soup Co. (CPB) tacked on 0.9% in premarket trading Thursday, after the canned soup, foods and snacks company reported fiscal fourth-quarter profit that matched expectation and sales that topped, as a 10% increase in prices offset a 5% decline in volume and mix. Net income for the quarter to July 30 rose to $169 million, or 57 cents a share, from $96 million, or 32 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 50 cents was the same as the FactSet consensus. Sales grew 4.1% to $2.068 billion, above the FactSet consensus of $2.056 billion, as meals and beverages sales inched up 0.1% to $936 million and snacks sales increased 7.6% to $1.13 billion. Price increased 6% in meals and beverages and rose 13% in snacks, while volume fell 5% in both segments. For fiscal 2024, the company expects adjusted EPS of $3.09 to $3.15, compared with the FactSet consensus of $3.09, and sees sales growth of negative 5% to positive 1.5% while the current FactSet sales consensus of $9.47 billion implies 1.2% growth. The stock has tumbled 17% over the past three months through Wednesday while the S&P 500 has gained 8%.

-Tomi Kilgore

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08-31-23 0735ET

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