Campbell Soup (CPB) Misses Q4 EPS by 3c, Guides FY Below Views

Campbell Soup (NYSE: CPB) reported Q4 EPS of $0.52, $0.03 worse than the analyst estimate of $0.55. Revenue for the quarter came in at $1.66 billion versus the consensus estimate of $1.69 billion.

GUIDANCE:

Campbell Soup sees FY2018 EPS of $3.04-$3.11, versus the consensus of $3.20.

Denise Morrison, Campbell’s President and Chief Executive Officer, said, “The operating environment for the packaged foods industry remains challenging due to shifting demographics, changing consumer preferences for food, the adoption of new shopping behaviors and the dynamic retailer landscape. In these times, sales growth remains a challenge. Despite multiple headwinds, we finished the year within our guidance and delivered another year of growth in adjusted EBIT and adjusted EPS.

“In the fourth quarter, Global Biscuits and Snacks was soft on the top line but generated a solid double-digit earnings increase versus the year-ago quarter. Americas Simple Meals and Beverages continued to deliver against its portfolio role, with sales performance in line with the categories in which we compete and margin expansion. While Campbell Fresh sales increased slightly and the bottom line was disappointing, we expect to return to profitable growth going forward.

“In fiscal 2017, we have made progress in several key areas, including increasing our successful multi-year cost savings initiative to $450 million by the end of fiscal 2020. The pending acquisition of Pacific Foods will add a purpose-driven, real food brand with a solid track record of growth to our portfolio. Additionally, our new Campbell Fresh leadership team has taken steps to enhance our quality processes and address capacity constraints toward our objective of returning the division to growth.”

Morrison concluded, “Looking ahead to fiscal 2018, we expect the operating environment to remain difficult. We will continue to position Campbell for long-term growth by managing costs aggressively and re-investing a portion of those savings back in the business with a focus on our strategic imperatives of real food, digital and e-commerce, health and well-being, and snacking.”

For earnings history and earnings-related data on Campbell Soup (CPB) click here.

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