An Overview of Campbell Soup Company's Fiscal 4Q15 Earnings
Stock price performance
The Campbell Soup Company (CPB) reported its fiscal 4Q15 earnings results on September 3, 2015. Following its earnings release, the stock went up by 2%, closing at $48.53 on September 3, 2015. The stock price continued to rise, closing at $49.38 on September 8, 2015.
The following reported results include charges related to cost savings initiatives. This quarter is one week shorter than the same quarter a year ago. The following comparisons are to fiscal 2014 and show the negative impact of currency translation:
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Fourth quarter sales decreased 9%, and organic sales increased 1%.
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Fourth quarter adjusted EPS from continuing operations increased 5% to $0.43.
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Full-year sales decreased 2%, and organic sales increased 1%.
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Full-year adjusted EPS from continuing operations of $2.46 was comparable to the prior year.
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Campbell Soup provided fiscal 2016 guidance within long-term growth targets announced in July 2015.
About the company
Campbell Soup and its subsidiaries engage in the manufacturing and marketing of branded convenience food products. The company operates in five segments based on product type and geographic location, including:
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US Simple Meals
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Global Baking and Snacking
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International Simple Meals and Beverages
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US Beverage
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Bolthouse and Foodservice
Led by its iconic Campbell’s Soup brand, the company’s portfolio includes brands such as Pepperidge Farm and Bolthouse Farms.
Management’s remarks
Denise Morrison, Campbell’s president and CEO, noted, “We had a solid finish to the fiscal year considering the difficult operating environment, delivered sales, adjusted EBIT and adjusted EPS within our most recent guidance. I am pleased with the fourth-quarter performance in U.S. Simple Meals as well as organic sales growth in the Bolthouse and Foodservice segment.”
Campbell’s main competitors in the industry are Hormel Foods (HRL), B&G Foods (BGS), and ConAgra Foods (CAG). All three stocks trade on NYSE, closing at $61.01, $35.94, and $41.15, respectively on September 10, 2015.
The First Trust Consumer Staples AlphaDEX ETF (FXG) invests 1.87% of its portfolio in CPB, and the Power Shares S&P 500 Low Volatility ETF (SPLV) invests 0.95% of its portfolio in CPB.
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