Campbell Soup Company Beats Estimates; Guides Above Views; Shares Surge (CPB)

Before the opening bell on Friday morning, Campbell Soup Co. (CPB) reported its second quarter earnings, posting higher sales and higher earnings than last year’s same quarter.

CPB’s Earnings in Brief

Campbell’s reported second quarter revenues of $2.281 billion, which were up from last year’s Q2 revenues of $2.162 billion. Net earnings for the quarter came in at $318 million, up from $187 million reported for last year’s Q2. CPB reported EPS for the quarter of 74 cents, a large increase from last year’s Q2 EPS of 54 cents. Campbell’s came in above analysts’ estimates of 73 cents EPS on revenues of $2.27 billion. Looking ahead to FY2014, the company sees EPS in the range of $2.53 to $2.58, which is above analysts’ expectations.

CEO Commentary

Campbell’s president and CEO, Denise Morrison, had the following comments about the company’s earnings results: "We remain focused on strengthening our core business and expanding into higher-growth spaces as we reshape our portfolio to improve Campbell's long-term growth trajectory. We made progress on both fronts in the second quarter after a slow start to the year. In the quarter, we delivered 6 percent reported net sales growth and 15 percent adjusted EBIT growth, driven by our core business and the Kelsen Group acquisition. We also closed on the divestiture of our European simple meals business. Finally, we maintained our steadfast focus on driving productivity and managing costs.”

CPB’s Dividend

Campbell Soup most recently raised its dividend in October 2013, boosting its quarterly payout from 29 cents to 31 cents. We expect CPB to declare its next dividend within the coming weeks.

Stock Performance

CPB stock was up $1.38, or 3.37%, in pre-market trading. YTD, the company’s stock is up down 4.81%.