Shares of Campbell Soup Company (NYSE:CPB), a producer of affordable snacks, soups, simple meals, and beverages, jumped over 9% Wednesday morning after beating fiscal second-quarter earnings estimates.
Sales jumped 24% to $2.71 billion, above analysts' estimates of $2.66 billion. However, the top-line growth wasn't quite as impressive as it appears: Organic sales checked in roughly flat compared to the prior year, and the growth was driven by recently completed acquisitions. Adjusted earnings per share dropped to $0.77 from the prior year's $1.00 per share, but still topped analysts' estimates calling for $0.70 per share.
Mark Clouse, Campbell's president and CEO, said the following in a press release:
During the quarter, we continued to make progress against key strategic initiatives. Our efforts to stabilize our core business, integrate Snyder's-Lance, deliver our cost savings agenda and focus and optimize the portfolio are all on track. Over time, these actions will enable us to increase investments in our core businesses while significantly reducing debt and creating meaningful value for shareholders.
Campbell Soup has struggled to rope in younger, more health-conscious consumers in recent years, which is reflected in its stock price decline. The better-than-expected second-quarter results are still a solid start for Clouse, who took control of the company's turnaround at the end of the last quarter. The company has made progress selling its international and fresh-food segments, to help focus on its core North American packaged foods business, but management still has work to do if it's to revitalize its core soups and snacks business.