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Campbell Soup Announces New Product Line

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Price movement

Campbell Soup (CPB) has a market cap of $18.4 billion and rose 0.52% to close at $60.13 per share on December 20, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.23%, 10.9%, and 17.0%, respectively, on the same day.

CPB is now trading 3.5% above its 20-day moving average, 8.2% above its 50-day moving average, and 0.83% above 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 14.0% on December 20.

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

  • Kraft Heinz (KHC): $104.7 billion
  • Mondelez International (MDLZ): $69.0 billion
  • General Mills (GIS): $36.9 billion

Latest news on CPB

In a press release on December 20, 2016, Campbell Soup reported the following: “Today, Campbell Soup Company (CPB) launched Well Yes!, a new ready-to-serve soup line that features clean, simple and nutritious ingredients. The innovative line of soups showcases ingredients that people know and understand, including wholesome grains, meats, and vegetables.”

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Performance of Campbell Soup in fiscal 1Q17

Campbell Soup (CPB) reported fiscal 1Q17 total sales of $2.202 million, which represents a YoY (year-over-year) fall of 0.05% from its total sales of $2.203 million 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% YoY in fiscal 1Q17. The company’s gross profit margin and EBIT (earnings before interest and taxes) margin expanded by 390 basis points and 650 basis points, respectively, YoY in fiscal 1Q17.

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

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, as compared to 0.80x and 2.9x, respectively, in fiscal 1Q16.

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%

In the next part, we’ll discuss Ingredion (INGR).

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