Campbell Soup Company Q3 Profit Tops Estimates - Quick Facts

(RTTNews) - Campbell Soup Company (CPB) reported third-quarter net income of $182 million or $0.58 per share, compared to $183 million or $0.58 per share, prior year. In the third quarter of fiscal 2015, the company incurred charges associated with its recently-announced initiatives to implement a new enterprise design that better aligns with its strategy, to reduce costs and to streamline its organizational structure. Adjusted earnings per share from continuing operations was $0.62, for the quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $0.52 for the quarter. Analysts' estimates typically exclude special items.

Adjusted EBIT from continuing operations decreased 2 percent to $305 million, reflecting the unfavorable impact of currency translation and higher marketing expenses on a constant currency basis, partly offset by a higher gross margin percentage. Sales decreased 4 percent to $1.90 billion, primarily due to the negative impact of currency translation. Organic sales decreased 1 percent with lower volume, partly offset by lower promotional spending and higher selling prices. Analysts expected revenue of $1.93 billion for the quarter.

Denise Morrison, Campbell's President and CEO, said, "In the third quarter, gross margin improved and adjusted EBIT and EPS were better than expected. Sales declined, primarily due to unfavorable currency and the impact of retailer inventory movements on our U.S. soup business."

Campbell now expects a year-over-year change in sales closer to the lower end of the previously announced range of -1 to +1 percent; a change in adjusted EBIT closer to the favorable end of the previously announced range of -7 to -5 percent; and a change in adjusted EPS closer to the favorable end of the previously announced range of -5 to -3 percent or $2.32 to $2.38 per share. Analysts expect the company to report full year earnings per share of $2.35.