Campbell Soup Q2 Profit Beats View; Affirms 2016 Outlook

(RTTNews) - Campbell Soup Co. (CPB) on Thursday reported a 19 percent increase in profit for the second quarter from last year, as restructuring charges and a slight decline in sales were more than offset by lower expenses and higher margins.

Adjusted earnings per share for the quarter beat analysts' expectations and revenues matched their estimates. Looking ahead, the company affirmed its financial outlook for fiscal 2016.

Attributable profit for the second quarter rose to $265 million or $0.85 per share from $222 million or $0.71 per share in the prior-year quarter.

Excluding items, adjusted earnings per share for the quarter were $0.87 per share, compared to $0.71 per share last year. On average, 15 analysts polled by Thomson Reuters expected earnings of $0.80 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales declined 1 percent to $2.20 billion from $2.23 billion in the previous year. Analysts expected revenues of $2.20 billion.

The company attributed the sales decline to lower volume and the adverse impact of currency translation, partly offset by higher selling prices, the benefit from the acquisition of Garden Fresh Gourmet and lower promotional spending.

Organic sales for the quarter were comparable with the prior year, and a bit below the company's expectation.

For fiscal 2016, Campbell still expects the year-over-year change in net sales to be in the range of a decline of 1 percent to flat, adjusted EBIT to increase by 10 to 13 percent and adjusted earnings per share to increase by 9 to 12 percent, to a range of $2.88 to $2.96 per share.

The Street expects the company to earn $2.89 per share for the year on revenues of $8.01 billion.

The company also said its three-year cost savings program is performing better than anticipated, and it has raised its 2018 target to $300 million.