Campbell Soup Raises FY15 Adj. EPS Guidance; Updates Long-term Growth Targets

(RTTNews) - Campbell Soup Company (CPB) announced the company revised its previous guidance for fiscal 2015. The company expects adjusted EPS to be in the range of -1 to 0 percent, or $2.43 to $2.46 per share, compared to the previous guidance of being at the favorable end of the -5 to -3 percent range or $2.32 to $2.38 per share.

Analysts polled by Thomson Reuters expect the company to report fiscal 2015 profit per share of $2.38. Analysts' estimates typically exclude special items.

Campbell now expects adjusted EBIT to decline -2 to -1 percent, compared to the previous guidance of being at the favorable end of the -7 to -5 percent range.

Consistent with previous sales guidance, the company expects sales to decline by 1 percent, reflecting the negative impact of currency translation.

Campbell also revised its long-term targets to reflect the current conditions in the food industry. The company's new long-term target for organic sales growth is 1 to 3 percent, compared to the previous target of 3 to 4 percent. Long-term earnings growth targets, which now exclude currency translation, remain unchanged with adjusted EBIT growing 4 to 6 percent and adjusted EPS growing 5 to 7 percent.

Campbell said the company now expects approximately $75 million in savings from the cost reduction initiatives in fiscal 2015. As a result, the company is increasing its annual savings target from $200 million to $250 million, which it expects to achieve by the close of fiscal 2018.