Campbell Soup exceeds analysts’ estimates for 4th quarter earnings and revenues
The company reports 47.51 pence adjusted EPS and revenue of £1.59 billion.
Campbell expects its Q1 adjusted EPS to be between 66.36 pence and 69.38 pence.
Campbell Soup Co (NYSE: CPB) on Thursday released its quarterly financial results, which were stronger than analysts had expected. The U.S. processed food company had also exceeded the experts’ profit and sales forecasts for the previous quarter (Q3).
The company’s shares are currently down 2% on Thursday, after initially falling by about 5%. Including the price action, Campbell Soup Company is now trading at £36.39 per share, almost the same price per share as at the beginning of the year. In March, when the COVID-19 restrictions were at their most severe, the stock had plummeted to £31.23 per share. Here is what you need to know about financial analysis of a company.
Campbell’s financial results for the 4th quarter compared to analysts’ estimates
Campbell said its net profit for the fourth quarter of the fiscal year was £64.86 million, or 21.12 pence per share. In the same quarter last year, the company reported a loss of 6.03 million pounds sterling or 2.26 pence per share.
Adjusted for non-recurring items, the processed food company earned 47.51 pence per share in the fourth quarter compared to 31.67 pence per share in the prior year. According to FactSet, analysts had forecast the Company’s fourth quarter adjusted earnings per share of 45.25 pence.
In terms of revenue, Campbell reported 1.59 billion pounds sterling for the final quarter, an increase of 18 percent year-on-year. Its revenues were also stronger than analysts’ forecast of £1.55 billion. In this context, Campbell’s competitor Blue Apron reported a net profit of £830 million in the second quarter in August.
According to Campbell, it generated £770 million in revenue from food and drink sales. Revenues from this segment were 28% higher than analysts’ estimated £724.20 million on an annualized basis, exceeding the £724.20 million estimated by analysts. Snacks sales, on the other hand, increased by 11% to £820 million in the fourth quarter from the expected £810 million.
Campbell’s forecast for the first quarter
The Camden-based company said Thursday that its adjusted earnings per share for the first quarter were likely to be between 66.36 pence and 69.38 pence. It is forecasting first quarter revenue growth of 5% to 7% for the first quarter. By way of comparison, experts have predicted the company’s first quarter revenue growth of 4.9% and earnings per share of 67.12 pence.
At the time of writing, Campbell Soup Company has a market capitalisation of £10.97 billion and a price-earnings ratio of 9.54.