Campbell Soup Beats Analyst Estimates on EPS

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Campbell Soup (NYS: CPB) reported earnings on May 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 29 (Q3), Campbell Soup met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share shrank.


Margins shrank across the board.

Revenue details
Campbell Soup tallied revenue of $1.82 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $1.81 billion on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $1.81 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.56. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.52 per share. GAAP EPS of $0.55 for Q3 were 3.5% lower than the prior-year quarter's $0.57 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.8%, 160 basis points worse than the prior-year quarter. Operating margin was 14.7%, 530 basis points worse than the prior-year quarter. Net margin was 9.7%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.60 billion. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $7.70 billion. The average EPS estimate is $2.40.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 502 members out of 558 rating the stock outperform, and 56 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 163 give Campbell Soup a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Campbell Soup is hold, with an average price target of $33.07.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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