Campbell Soup’s earnings
On November 24, 2015, Campbell Soup (CPB) will report its first quarter earnings for fiscal 2016. Campbell is based in Camden, New Jersey. The company and its subsidiaries manufacture and market convenience food products. Campbell is part of the processed and packaged goods industry.
Campbell’s peers in the industry include Hormel Foods (HRL), General Mills (GIS), and ConAgra Foods (CAG). Hormel will report its fourth quarter fiscal 2015 results on November 24, while General Mills and ConAgra will report their second quarter fiscal 2016 results on December 15 and December 22, respectively.
Stock price performance
Campbell’s stock reacted positively in spite of the falling fiscal 4Q15 results. The stock rose by 2%, closing at $48.5 on September 3. The stock has risen more than 15% so far in the calendar year 2015. The stock performed well mainly because of the company’s capital control mechanism. Campbell reduced the inflation-related charges by lowering its input costs and capital expenses.
Campbell continued to raise its earnings even with a year-over-year 9% fall in revenue. Analysts expect the stock to climb further in the upcoming quarters of fiscal 2016 based on the earnings consensus estimates of $2.74 per share, as well as the benefit the company could realize from the cost savings program. In the first week of November, the stock fell 3%, closing at $48.77 from $50.4. It closed at $48.68 on November 16.
Hormel, General Mills, and ConAgra closed at $67.8, $57.1, and $39.8, respectively, on November 16. The PowerShares Dynamic Food and Beverage ETF (PBJ) invest 2.7% of its portfolio in the CPB stock. It also invests 4.8% and 2.5% in the GIS and CAG stocks, respectively, as on November 16. It closed at $32.1 on November 16. PBJ’S YTD (year-to-date) return was 5.3% while Campbell’s YTD return was 10.6% as on November 16.