Campbell Soup Company Stock Sinks on Q1 Earnings Miss

Advertisement

Campbell Soup Company (NYSE:CPB) stock took a hit on Tuesday following the release of its earnings report for its fiscal first quarter of 2018.

Campbell Soup Company Stock Sinks on Q1 Earnings Miss

The bad news for CPB stock starts today with earnings per share of 92 cents. This is down from Campbell Soup Company’s earnings per share of $1.00 from the same time last year. It also came in below Wall Street’s earnings per share estimate of 97 cents for the quarter.

Campbell Soup Company’s fiscal first quarter revenue of $2.16 billion also didn’t do CPB stock any favors today. The canned food company’s revenue from its fiscal first quarter of 2017 was $2.20 billion. Analysts were expecting it to report revenue of $2.17 billion for its fiscal first quarter of the year.

Campbell Soup Company is attributing its poor fiscal first quarter of 2017 to a few factors. The first is a lower adjusted gross margin rate. It says this is due to higher carrot costs, as well as an increase to logistics and transportation costs following hurricane season.

Another group of negatives for Campbell Soup Company in its fiscal first quarter of 2018 was the performance for its Americas Simple Meals and Beverages division. This includes US. soup sales dropping by 9%, customer takeaway for U.S. soup declining 2% and  lower retailer inventory. CPB says it was these factors that mostly resulted in its organic sales dropping by 2% during the quarter.

Campbell Soup Company also updated its outlook for fiscal 2018 in its most recent earnings report. It says that it is now expecting earnings per share for the year to range from $2.95 to $3.02. Wall Street is looking for earnings per share of $3.05 in fiscal 2018.

CPB stock was down 6% as of Tuesday morning and is down 23% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/11/campbell-soup-company-missed-q1-earnings/.

©2024 InvestorPlace Media, LLC