Campbell Soup Beats Analyst Estimates on EPS

Campbell Soup (NYS: CPB) reported earnings on Feb. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 27 (Q2), Campbell Soup met expectations on revenues and beat expectations on earnings per share.

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

Margins contracted across the board.

Revenue details
Campbell Soup reported revenue of $2.33 billion. The 14 analysts polled by S&P Capital IQ expected to see revenue of $2.32 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $2.11 billion.

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 $0.70. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.66 per share. GAAP EPS of $0.60 for Q2 were 6.3% lower than the prior-year quarter's $0.64 per share.

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 35.1%, 330 basis points worse than the prior-year quarter. Operating margin was 13.2%, 180 basis points worse than the prior-year quarter. Net margin was 8.1%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.03 billion. On the bottom line, the average EPS estimate is $0.57.

Next year's average estimate for revenue is $8.51 billion. The average EPS estimate is $2.54.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 497 members out of 557 rating the stock outperform, and 60 members rating it underperform. Among 189 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 178 give Campbell Soup a green thumbs-up, and 11 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 $35.80.

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The article Campbell Soup Beats Analyst Estimates on EPS originally appeared on Fool.com.

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. TMFDisclosureHere

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