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Campbell Soup (NYSE:CPB) shares jumped over 4% Wednesday after the company topped fiscal first-quarter profit and revenue expectations.
The company’s earnings per share for the period came in at $1.02, $0.16 better than the analyst estimate of $0.86, while revenue was $2.58 billion versus the consensus estimate of $2.42B.
Net sales and organic net sales growth of 15% were put down to inflation-driven pricing, brand strength, and continued supply recovery.
“Our strong first-quarter results reflect our continued success in driving the relevance of our brands and improving our execution across our supply chain,” said Campbell’s President and CEO Mark Clouse. “Through a combination of inflation-driven pricing actions and productivity improvements, we have substantially mitigated significant inflationary pressure in the quarter while continuing to provide quality and value to consumers.”
Looking ahead, Campbell Soup raised its full-year fiscal 2023 guidance and now expects earnings between $2.90 and $3 per share versus the consensus of $2.91, up from the previous expectation of $2.85 to $2.95
Net sales are now expected to grow from +7% to +9%.
Following the report, Oppenheimer analysts said, “Campbell reported 1Q23 EPS of $1.02, representing 15% growth, which was $0.14 ahead of our consensus matching estimate for the quarter.”
“Organic sales were up 15%, with pricing up over 16% including benefitting from recent pricing actions. Volume was down just 1% which was well ahead of our estimate. By division, organic sales were up 15% in Meals and Beverages and were also up 15% in Snacks. The gross margin was down 30bps versus the prior year and up strongly sequentially well ahead of our estimate. EBIT was up 15%, driven by increases in both divisions.”
