Latest Performance: Campbell Soup Company, listed under the ticker symbol CPB on the New York Stock Exchange, announced a 1.2% year-on-year revenue decrease in its second-quarter FY24, bringing in $2.46 billion. However, this surpasses the anticipated $2.44 billion estimated by analysts.
Sales in the Meals & Beverages division, both reported and organic, saw a 2% dip, while the Snacks segment remained steady.
Gross margin showed growth, expanding by 110 basis points to 31.6%. Additionally, the adjusted EBIT climbed by 1% year-on-year to $364 million.
On the cost front, total expenses increased by 0.8% to $2.139 billion. The adjusted earnings per share (EPS) came in at $0.80, exceeding the consensus of $0.77.
The company’s coffers held $169 million in cash and equivalents as of January 28, 2024. The inflow of operating cash reached $684 million over the past six months.
Looking ahead, President and CEO Mark Clouse expressed enthusiasm over the prospects of the pending acquisition of Sovos Brands. Clouse expects this move to fuel further growth in the Meals & Beverages sector and drive improvements in the overall portfolio.
Future Outlook: Campbell remains confident in its FY24 adjusted EPS, maintaining the forecast range at $3.09-$3.15 compared to the street consensus of $3.07.
Revenue expectations for FY24 are guided between $9.31 billion and $9.497 billion, slightly lower than the projected $9.37 billion.
Market Response: CPB shares surged by 2.68% to reach $44.10 as of the latest market check on Wednesday.
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