Campbell Soup Company (NYSE:CPB)’s net
profit in the fourth quarter has risen 27 percent thanks to strong sales of its
soup and other simple meal products, beating Street expectations. Its guidance
for fiscal year 2013 also surpasses analysts’ views. All this had its effect on
the stock which rose 5 percent in pre-market trading.
The company’s profits for the period
ended July 29 were $127 million which works out to 40 cents per share. In
comparison, last year’s profit for the same period was $100 million or 31 cents
per share. If one time acquisition costs are excluded, the earnings per share
is even higher, 41 cents. Even revenue figures, although flat at $1.61 billion,
were still better than analysts’ estimates.
Will
CPB Continue To Hit New Highs? Find Out Here
In the simple meals category, sales
jumped 7 percent. Soup sales rose by nine percent, while condensed soup sales
rose by 4 percent. On the other hand, ready-to-serve soup sales climbed 1
percent. Sales of sauces jumped by 4 percent; beverages rose by 3 percent.
Higher costs and promotional expenditure
pushed down gross margins. But according to the company, this was offset by
higher selling prices and enhanced productivity.
The Camden, New Jersey based company
made a profit of $774 million for the entire year, lower than last year’s $805
million. In terms of earnings per share, this works out to $2.41 per share. Annual
revenues on the other hand, fell marginally from $7.72 billion to $7.71
billion.
For fiscal 2013, the company expects
revenues to rise by 10 percent to 12 percent. This translates to $8.48 billion
to $8.64 billion in revenues. It expects adjusted earnings between $2.51 per
share and $2.57 per share.
Wall Street on the other hand expects
revenues of $8.47 billion and earnings of $2.52 per share.
Shares of CPB jumped 0.10% to $35.17 and
made a new 52-week high of $36.28.
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