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How Did Campbell Soup Company Perform in Fiscal 1Q17?

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Price movement

Campbell Soup (CPB) has a market cap of $17.5 billion. It rose 3.6% to close at $57.02 per share on November 22, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 3.8%, 7.3%, and 10.9%, respectively, on the same day.

CPB is trading 5.7% above its 20-day moving average, 5.3% above its 50-day moving average, and 4.6% below its 200-day moving average.

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Related ETF and peers

The PowerShares Dynamic Market Portfolio ETF (PWC) invests 0.49% of its holdings in Campbell Soup. The YTD price movement of PWC was 9.8% on November 22.

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

  • Kraft Heinz (KHC) — $102.7 billion
  • Mondelez International (MDLZ) — $67.1 billion
  • General Mills (GIS) — $37.1 billion

Performance of Campbell Soup in fiscal 1Q17

Campbell Soup (CPB) reported fiscal 1Q17 total sales of $2,202,000, a fall of 0.05% compared to total sales of $2,203,000 in fiscal 1Q16. This flat sales growth saw a favorable impact of currency translation, offset by a fall in organic sales.

Sales from Global Biscuits & Snacks rose 2.9% and sales from Campbell Fresh fell 6.0% in fiscal 1Q17 compared to fiscal 1Q16. The company’s gross profit margin and EBIT (earnings before interest and taxes) margin expanded by 390 basis points and 650 basis points, respectively, in fiscal 1Q17 compared to fiscal 1Q16.

Its net income and EPS (earnings per share) rose to $292.0 million and $0.94, respectively, in fiscal 1Q17 compared to $194.0 million and $0.62, respectively, in fiscal 1Q16. It reported adjusted EPS of $1.00 in fiscal 1Q17, a rise of 5.3% compared to fiscal 1Q16.

Campbell Soup’s (CPB) cash and cash equivalents rose 10.3% in fiscal 1Q17 compared to fiscal 1Q16. Its current ratio and debt-to-equity ratio fell to 0.78x and 2.2x, respectively, in fiscal 1Q17 compared to 0.80x and 2.9x, respectively, in fiscal 1Q16.

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Quarterly dividend

Campbell Soup (CPB) has declared a regular quarterly dividend of $0.35 per share on its common stock. The dividend will be paid on January 30, 2017, to shareholders of record at the close of business on January 11, 2017.

Projections

Campbell Soup has made the following projections for fiscal 2017:

  • organic sales growth: 0%–1%
  • adjusted EBIT growth: 1%–4%
  • adjusted EPS growth: 2%–5% or $3.00–$3.09 per share

For an ongoing analysis of this sector, please visit Market Realist’s Consumer Discretionary page.

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