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Campbell Soup Declared Quarterly Dividend on June 22

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Price movement of Campbell Soup

Campbell Soup (CPB) has a market cap of $19.4 billion. It fell by 0.41% to close at $62.59 per share on June 22, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 1.3%, 4.5%, and 20.4%, respectively, on the same day.

This means that CPB is trading 1.4% above its 20-day moving average, 0.37% above its 50-day moving average, and 11.1% above its 200-day moving average.

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Related ETF and peers

The PowerShares Dynamic Market Portfolio ETF (PWC) invests 0.55% of its holdings in Campbell Soup. The ETF tracks a quant-selected, tier-weighted index covering the entire US equity market. The YTD price movement of PWC was -1.2% on June 22, 2016.

The market caps of Campbell Soup’s competitors are as follows:

  • Mondelez International (MDLZ) — $68.9 billion
  • General Mills (GIS) — $39.5 billion
  • Kraft Heinz Company (KHC) — $104.2 billion

Campbell Soup declared dividend

Campbell Soup has declared a regular quarterly dividend of $0.312 per share on its common stock. The dividend will be paid on August 1, 2016, to shareholders of record at the close of business on July 11, 2016.

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Performance of Campbell Soup in fiscal 3Q16

Campbell Soup reported fiscal 3Q16 total sales of ~$1.9 million, a fall of 1.6% compared to total sales of $1.9 billion in fiscal 3Q15.

Sales from Americas Simple Meals & Beverages and Global Biscuits & Snacks fell by 3.0% and 2.4%, respectively. Sales from Campbell Fresh rose by 6.5% in fiscal 3Q16 compared to fiscal 3Q15.

The company’s net income and EPS (earnings per share) rose to $185.0 million and $0.59, respectively, in fiscal 3Q16, compared to $179.0 million and $0.57, respectively, in fiscal 3Q15. It reported adjusted EPS of $0.65 in fiscal 3Q16, a fall of 1.5% compared to fiscal 3Q15.

Campbell Soup’s cash and cash equivalents rose by 66.5% in fiscal 3Q16 compared to fiscal 3Q15. Its current ratio rose to 0.86x, and its debt-to-equity ratio fell to 2.2x in fiscal 3Q16 compared to a current ratio and a debt-to-equity ratio of 0.82x and 2.4x, respectively, in fiscal 3Q15.

Projections

The company has made the following projections for fiscal 2016:

  • net sales growth in the range of -1%–0%
  • adjusted EBIT (earnings before interest and tax) growth in the range of 11%–13%
  • adjusted EPS in the range of $2.93–$3.00

This guidance includes a 2% negative impact from currency translation and from the Garden Fresh Gourmet acquisition.

In the next part, we’ll look at Nike.

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