2024

April

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<p class="has-drop-cap">Campbell Soup Company (NYSE: CPB) reported <a href="https://s27.q4cdn.com/108522393/files/doc_financials/2024/q3/Q3FY24-Earnings-Press-Release_FINAL_06-04-24.pdf" target="_blank" aria-label="robust financial results (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">robust financial results</a> for the third quarter of fiscal 2024, which ended on April 28, 2024. <br><br>The company completed its acquisition of Sovos Brands, Inc. on March 12, 2024, which significantly contributed to its performance. Net sales for the quarter were $2.4 billion, representing a 6% increase compared to the same period last year. <br><br>On an organic basis, net sales remained comparable to the prior year. Over a two-year compound annual growth rate (CAGR), reported net sales increased by 5%, and organic net sales grew by 2%.</p>
<p>Earnings Before Interest and Taxes (EBIT) for the quarter were $248 million, while adjusted EBIT saw a notable increase of 13% to $354 million, reflecting the positive impact of the Sovos Brands acquisition.<br><br>The company’s Earnings Per Share (<a href="https://tokenist.com/investing/how-to-value-a-stock/" rel="noopener noreferrer nofollow" class="deco-link">EPS</a>) was $0.44, with adjusted EPS rising 10% to $0.75. Campbell’s President and CEO, Mark Clouse, highlighted the sequential volume improvement and stable organic net sales, which, combined with the acquisition, drove double-digit growth in adjusted EBIT and EPS.</p>
<p>The integration of Sovos Brands has already begun to bring significant incremental growth to Campbell, as evidenced by the quarter’s results. The acquisition played a crucial role in the company’s ability to navigate the pace of consumer recovery, contributing positively to both the top and bottom lines.</p>
<h3 id="campbell-soup-company-beats-eps-and-revenue-expectations-in-fiscal-q3">Campbell Soup Company Beats EPS and Revenue Expectations in Fiscal Q3</h3>
<p>When comparing Campbell’s third-quarter performance against market expectations, the company exceeded analysts’ projections. The expected EPS for the quarter was $0.705, but Campbell reported an adjusted EPS of $0.75, surpassing expectations by 6.4%.</p>
<p>In terms of revenue, Campbell also exceeded expectations. Analysts had anticipated quarterly revenue of $2.33 billion, but the company reported net sales of $2.4 billion, marking a 3% beat. This increase in net sales was driven by the Sovos Brands acquisition and favorable net price realization despite the challenging market conditions and higher cost inflation.</p>
<p>The company’s gross profit increased from $668 million to $732 million, with an improved gross profit margin of 30.9%, up from 30.0% in the previous year. Adjusted gross profit also increased to $740 million, with an adjusted gross profit margin of 31.2%.</p>
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<h3 id="campbell-updates-full-year-guidance-expects-eps-in-the-range-of-3-07-to-3-10">Campbell Updates Full Year Guidance, Expects EPS in the Range of $3.07 to $3.10</h3>
<p>Campbell has updated its full-year fiscal 2024 guidance to reflect the expected performance of its base business and the impact of the Sovos Brands acquisition. <br><br>The company now expects full-year reported net sales growth to be in the range of 3% to 4%, driven by the incremental impact of the acquisition. Organic net sales growth is tracking to the midpoint of the updated range of approximately 0% to down 1%, reflecting the current pace of consumer recovery.</p>
<p>Campbell’s full-year adjusted EBIT growth for the combined business is expected to be approximately 6.5% to 7%, reflecting the partial year contribution of the acquisition, inclusive of integration savings, as well as base business performance.</p>
<p>The company also expects full-year adjusted earnings per share growth for the combined business to be approximately 2% to 3%, with EPS projected to be in the range of $3.07 to $3.10, compared to $3.00 in the prior year. <br><br>This guidance includes expected dilution from the Sovos Brands acquisition of between $0.01 and $0.02 per share. Campbell anticipates building momentum into the fourth quarter, with continued stabilization of year-over-year volume growth and double-digit growth in both fourth-quarter adjusted EBIT and adjusted earnings per share.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
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<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/campbell-soup-beats-eps-and-revenue-expectations-in-fiscal-q3-ups-guidance/">Campbell Soup Beats EPS and Revenue Expectations in Fiscal Q3, Ups Guidance</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Campbell Soup Beats EPS and Revenue Expectations in Fiscal Q3, Ups Guidance

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